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Production Possibilities Frontier
The production possibilities frontier (PPF) is a curve depicting all maximum output possibilities for two or more goods, given a set of inputs.
Opportunity Cost
The value of the next best alternative that is forgone as a result of making a particular choice.
Inputs
In economics, inputs are the resources used in the production of goods and services, such as labor, materials, and capital.
Trade-off
A situation where making a decision to gain one thing requires sacrificing another.
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