Ag Econ

Front 1

factors of production

Back 1

economies use four basic categories of resources or inputs to produce all goods and services: land, labor, physical capital, and entrepreneurship

Front 2

production possibilities frontier

Back 2

the curve that shows the combinations of goods and services that an economy can produce in a given time period

Front 3

gross domestic product

Back 3

the value of all the new final goods and services produced annually in an economy`

Front 4

allocative efficiency

Back 4

when an economy produces the combination of goods and services that it values most highly

Front 5

equity

Back 5

when an allocation is fair or just. different people may have very different conceptions of what truly is fair or just

Front 6

comparative advantage

Back 6

when one individual or group has a lower opportunity cost of pursing an activity than does another individual or group

Front 7

absolute advantage

Back 7

when an individual or group is to produce more of a good than another individual or group