Basic Economic Concepts

This cannot happen.

When you produce more of one good, you have to give up more and more of the other.

When you produce more of one good, you have to give up less of the other.

When you produce more of one good, you give up the same amount of the other.

The monetary cost paid for purchasing goods or services

The next best alternative foregone when making a choice

The total sum of benefits received from a particular choice

The additional benefit gained by using one more unit of a resource

You can only be productively efficient.

The production is at the point of profit-maximization for the firm.

The production is at the point that society desires.

The production is at the point that minimizes all costs for the firm.

Reduced consumption opportunities today due for future budget deficit reduction efforts.

Lessened inflationary pressures now at cost of possible short-term unemployment increases.

Greater immediate investment resulting from lower interest rates linked with reduced government borrowing.

Increased future production capabilities resulting from decreased current public debt levels.

The PPC will shift outwards due to increased investment in capital goods spurred by lower interest rates.

The PPC will shift inwards as higher inflation rates reduce real wealth and productive efficiency.

There would be movement along the PPC to a point representing more consumer goods and fewer capital goods.

No change to the PPC because monetary policy primarily affects aggregate demand, not productive capacity.

Underconsumption of a merit good

Negative externality

Overproduction of a public good

Inflationary pressure

Lower present employment due to benefits of an expanding economy.

Decreased consumer spending as savings become more attractive relative interest rate drop.

Immediate rise in imports as a metaphorical representation of a nation's increased wealth.

Higher future inflation which could erode purchasing power over time.

Any point inside the curve

The origin where both axes meet

Any point outside of the curve

Any point on the curve itself

The PPC has shifted inward due to technological regression.

The economy is not using all its resources efficiently.

The economy has achieved full employment.

There is an increase in overall demand for goods and services.

Shrinking size already established possibilities curves.

Incorrect productions possibilities curves being static unchanged over time

An outward shift of entire PPC.

Movement from one point another within existing curve.