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What Economic Concepts Are Represented in the Production Possibilities Model

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What economic concepts are represented in the production possibilities model?


Definitions:

Externality

An economic term referring to a cost or benefit that affects a party who did not choose to incur that cost or benefit, often leading to market failure.

External

Pertaining to elements or influences originating outside a system or entity.

Public Goods

Goods or services that are available to all members of society, characterized by non-excludability and non-rivalry in consumption.

Exclude

Refers to the act of leaving something or someone out or not including them.

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