econ100 ch 2

• A production possibility frontier is a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology
• As the economy moves down the production possibility frontier, it experiences increasing marginal opportunity costs
• Economic growth: The expansion of society’s production potential.
• Economic growth shifts the PPF outwards
• Entrepreneur: Someone who operates a business, bringing together the factors of production to produce goods and services.
• Natural disasters shift the PPC inwards