| A | B |
|---|
| Production Possibilities Curve | A graph that shows different ways to use resources in an economy. |
| Efficiency | Points along a production possiblitity curve. Everything is in balance when then happens concerning producing two different goods. |
| Underutilization | When a point falls below a curve line in a production possibilities curve it means there will be a shortage of one or more items in an economy. |
| Cost | The alternative we give up when we choose to produce one good over another. |
| Law of Increasing Costs | When shift from making one good to another the cost of producing the second unit increases. |
| Increased Immigration | We experience growth in our economy and the PP Curve will shift to the right as result of this circumstance. |
| New Inventions | Another reason why the PP curve may shift to the right and the economy grows. Riderless vehicles could be an example of this type of circumstance. |
| Discovery of new resources | If the U.S. were to discover a new oil field our PP curve would shift to the right and show growth in the economy. |
| Aging population | One reason why our economy may decrease or shrink is when the quality or quantity of our workers decrease. |
| Lack of education | When workers cannot read or write or think very well it causes our production to decrease. |
| Unhealthy population | When people get sick and miss work this decreases our productivity in the workplace. |
| Growth | When a production possibility curve shifts to the right, this will occur in the economy. |
