Unit 1: Economics and Globalization

Lesson 1c: Making Choices: Production Possibilities Curve (PPC) and Benefit Cost Analysis

Key Terms


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Key Terms:


production possibilities, necessity of choice, law of increasing costs, concave to the origin, opportunity cost, constant cost, benefit cost analysis (marginal analysis), economic growth, consumer goods, capital goods, shrinking PPC, nonproportional growth



marginal costs (MC), marginal benefits (MB), MB=MC Rule, sunk (fixed) costs



Lesson 1c