module 3 and 4

when you give up something in order to have something else

illustrates the trade-off facing an economy that produces only two goods. it shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced.

if there is no way to make anyone better off without making at least one person worse off

if an economy produces at a point on its PPC

if an economy produces at the point along its PPC that makes consumers as well off as possible

the technical means for producing goods and services

individuals provide goods and services to each other and receive goods and services in return

people can get more of what they want though trade than the could if they tried to be self-sufficient

each person specializes in the task that he or she is good at

an individual has this advantage in producing a good or service if the opportunity cost of producing the good or service is lower for that individual than for other people

an individual has this advantage in producing a good or service if they can make more of it with a given amount of time and resources

indicate the rate at which one good can be exchanged for another