Guns And Butter Curve
In the chart, the red curve represents all possible choices of production for the economy. The black dots represent two possible choices of outputs. The point here is that every choice has an opportunity cost; you can get more of something only by giving up something else. Also notice that the curve is the limit to the production ~ you cannot produce outside the curve unless there is an increase in productivity.
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Regulatory Capital
Net worth as defined by rules adopted by a regulatory agency, which may be different than capital calculated under generally accepted accounting principles....
