Ch+1.3

Ch 1.3 __Production Possibilites__ __Efficieny, Growth, and Cost__ __Recourses and Technology__
 * production possibilities curve- show alternative ways to use an economy's productive resource
 * production possibilities frontier- shows combinations of the production of resources
 * Efficiency means using resources in such a way as to maximize the production or output of goods and services
 * underutilization means using fewer resources that the economy is capable of using
 * if quality or quantity of available land labor or capital changes then the curve will move
 * cost is the alternativewe give up when we choose one option over ther other
 * law of increasing cost states that as production switches from one item to another, more and more resources of the second item, therefore the opportunity cost increases
 * a country's resources include its land and natural resources, it's work force, and its physical and human capital.
 * each production method uses different technology, or know how to create products

__Questions #1-6__
 * 1) Underutilization is depicted on a production possibilities frontier by seeing that if there were fewer resources the economy would go down
 * 2) A production possibilities curve illustrates how efficient an economy is by showing how the economy at its normal/working point, well in this case at it's current time and it would show what the economy would look like if certain things occured, they could be both bad or good
 * 3) A production possibilities curve illustrates opportunity cost by showing the amount of a product and what would happen if a different product where to be chosen.
 * 4) Yes, the production possibilities for farm output decrease because there are likely less farms for crops to be grown.
 * 5) A. the computer was invented, farmed goods definitely became the trade off B. The farm workers would fall under underutilization. C Again a drought would fall underutilization.
 * 6) A. the point would move down if farmed goods plumeted. (b) the frontier would shift to the right if resources increased