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Factors of Production: What is Labour?
Labour refers to the work done by human beings as part of the production process
What is opportunity cost on a PPF with perfect factor substitution?
Constant
What will the PPF look like with zero factor substitution?
A box
How is opportunity cost demonstrated on a PPF?
Opportunity cost is shown by moving along the curve of the PPF. Gaining more of one good means you give up some of another.
What is opportunity cost on a PPF with imperfect factor substitution?
Increasing toward the margin
What is meant by zero factor substitution?
Factors of production can only make one type of good or the other.
Define division of labour
Breaking up large jobs into smaller tasks.
What is the basic economic problem?
The basic economic problem states that resources have to be allocated between competing uses because wants are infinite while resources are scarce.
How is Productive Efficiency represented using a PPF?
Any point on the boundary of the PPF is Productively Efficient.
How much worse off is the average British worker as a result of the low productivity growth following 2008? (as of 5 July 2019)
£5,000 per year
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