Retrieval Activity - Production Possibility Frontier
Here is a set of revision quizlet activities on the production possibility frontier.
- Allocative efficiency: Any combination of outputs on the PPF
- Capital deepening- Increased capital inputs per worker
- Diminishing returns - Falling marginal product as more inputs are used
- Economic growth- An outward shift of the PPF
- Improved efficiency- Increasing potential output with the same resources
- Innovation- Improvements to production processes and products
- Opportunity cost- Output that is given up when resources are switched to another use
- Pareto improvement- An action done in an economy that harms no one and helps at least one person.
- Productive efficiency- Occurs when we maximise output from a given stock of resources - associated with high productivity
- Productivity - Output per person employed
- Resource depletion- Decline in the stock of factor resources
- Resource depreciation- When productivity of resources diminishes with age and use
- Specialisation of labour- Degree to which tasks are divided into separate jobs
- Unemployed resources- Under-utilisation of the labour force