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15 Cards in this Set

  • Front
  • Back
Absolute Advantage
the ability to produce something more efficiently
productive equipment or machinery
Comparative Advantage
the ability to produce something with a lower opportunity cost
a social science that studies how resources are used and is often concerned with how resources can be used to their fullest potential
using resouces to their max potential
all human activity that is productive
all natural resources
Law of increasing costs
law that states that when more of a product is initially being produced the higher the opportunity cost will be to produce still more
economic problems encountere by the nation as a whole
economic problems face by individual units within the overall econ
Opportunity cost
amount of one good that must be sacrificed to obtain an alternative good. Opp C of Good X = Change in good Y/ Change in good X
Postive economics
economic analysis that draws conclusions based on logical deduction or induction. Value jud. are avoided
Production Possibilities frontier
the combo of two goods that can be produced if the economy uses all of its resources fully and efficiently
Normative Economics
Economics that involves value judgements
anything that can be used to produce a good or service