Microeconomic: Principles of a changing world Chapter 2
correct answersExpanding resources 2 reasons for economic growth - correct answerstechnology and training 1.More resources (Labor or Capital). if more resources are available the PPF will move outward. 2.Technology advance. technology can be generally applied in all industries or specific to one certain industry. with more advanced general technology, the PPF will move outward absolute advantage - correct answersAn absolute advantage can exist one country can produce more of a good then another country In this instance the United States can produce two times more oil 40 million versus 20 million barrels and five times as many silicon chips 40 million versus 8 million as Mexico, It would have the absolute advantage absolute advantage - correct answersone country can produce more of a good than another country allocative efficiency - correct answersOccurs when the mix of goods and services produced is the most desired by society In capitalist countries this is determined by consumers and businesses and their interaction through markets Allocative efficiency requires that the right mix of goods be produced at the lowest cos
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