| A | B |
|---|
| production possibilities frontier | boundary between combinations of goods/services produced and those that cannot be produced, given production factors and technology |
| production efficiency | not producing more of one good/service w/o producing less of something else |
| tradeoff | an exchange, giving up one thing to get something else |
| free lunch | a gift, getting something without giving up something else |
| allocative efficiency | goods and services produced are those people value most |
| economic growth | sustained expansion of production possibilities |
| comparative advantage | person able to perform activity or produce a good or service at lower opportunity cost |
| absolute advantage | when one person is more productive than another in several or all activities |
