Economic Choices And Decision Making Understand Costs/Benefits Understand the Production Possibilities Frontier and Trade Offs Understand causes of Economic Growth

Trade Offs Alternative Choices to a Problem

Opportunity Cost What is given up in a decision

Cost-Benefit Analysis Comparing costs and benefits Benefits should outweigh costs

Production Possibilities Frontier Gives various combinations of goods or services an economy can produce when all productive resources are fully employed

Fully Employed Resources Point will be on the curve Business efficient

Idle Resources Business not efficient Resources not fully employed Point inside the frontier

Economic Growth Production frontier can change because of population, capital, and productivity The whole frontier can and will shift outward when growth occurs

DO YOU KNOW? What the production possibilities frontiers looks like and shows us??? Difference between idle and fully employed resources??? What causes economic growth and what are the effects of it???