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7 Cards in this Set
- Front
- Back
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factors of production
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economies use four basic categories of resources or inputs to produce all goods and services: land, labor, physical capital, and entrepreneurship
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production possibilities frontier
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the curve that shows the combinations of goods and services that an economy can produce in a given time period
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gross domestic product
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the value of all the new final goods and services produced annually in an economy`
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allocative efficiency
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when an economy produces the combination of goods and services that it values most highly
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equity
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when an allocation is fair or just. different people may have very different conceptions of what truly is fair or just
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comparative advantage
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when one individual or group has a lower opportunity cost of pursing an activity than does another individual or group
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absolute advantage
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when an individual or group is to produce more of a good than another individual or group
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