Capital refers to the machines and equipment that businesses use as part of their production process
Individuals have more specific skill sets that are used to carry out narrower jobs with specific output.
£5,000 per year
Moving from a point within the PPF to a point on the PPF.
A straight line with constant gradient
Any event which increases the factors of production or increases the efficiency of the factors of production. e.g. more immigration, new technology that affects both industries
Increasing toward the margin
The basic economic problem states that resources have to be allocated between competing uses because wants are infinite while resources are scarce.
Factors of production can make either type of good, and they are equally good at producing either good.
