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