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Definition
| The choice between alternative uses for a given quantity of a resource. |
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Definition
| The different uses to which resources are put in order to produce different goods and services. The manner in which a society allocates its scarce resources determines what it produces. |
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| Real economic cost of a good or service produced measured by the value of the sacrificed alternative. |
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Term
| production possibility frontier (PPF) |
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Definition
| The line on a graph showing the different maximum output combinations of goods or services that can be obtained from a fixed amount of resources. |
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Definition
| The question concerning the decisions made by an economy about what (and how much of) particular goods and services to produce with its limited resources. |
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Definition
| The question concerning the decisions made by an economy about the techonology used to produce goods and services. |
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Definition
| Resources that are not used to their fullest potential. |
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Term
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Definition
| An economy's stock of capital, much of it publicly owned, that provides basic services to producers and consumers. Includes such facilities as highways, electric power, water supplies, educational institutions, and health services. |
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Definition
| An increase in the production capacity of the economy. |
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Definition
| a constant average level of prices for all goods and services. |
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Term
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Definition
| The type of social goal that has important economic dimensions. |
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