Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
Specialization
|
concentrating the activity of a unit of a production resource- especially labor- on a single task or produiction operation
|
|
|
Comparative advantage
|
a producer has a comparative advantage relative to another producer if he or she can produce a good or serive at alower opportunity cost than the other.
|
|
|
Absolute advanatage
|
a producer has an absolute advantage relative to another producer if he or she can produce more of a good or service than the othjer with the same amount of resources.
|
|
|
interdependence
|
the relationships between individuals and institutions in a country or between countries that arises because of specialization of produiction
|
|
|
coordination problem
|
the problem of how we make sure that all specialized activitie of people will be brought together by an economic system to answer the basic economic questions
|
|
|
market economy
|
an economic system in which the basic questions of what, how, and for whom to produce are resolved primarliy by buyers and sellers interacting in markets.
|
|
|
private property rights
|
the exclu of someone to use a scarce resource or good in whatever manner they think best.
|
|
|
centrally directed economy
|
an economic system in which the basic questions of what, how, and for whom to produce are resolved primarily by gov authority
|
|
|
traditional economy
|
an economic system in which the basic questions of what, how, and for whom to produced are resolved primarily by sutom and tradition
|
|
|
mixed economy
|
an economic system in whicht he basic questions of what, hwo, and for whom to produce are resolved by a mixture of marker forces with gov direction and/ or custom and tradition
|
|
|
marketplace
|
a network of dealings between buyers and sellers of a resource or product; the dealings may take place at a particualar location, or they may take place by communication at a distance with no face-to-face contact between buyers and sellers.
|
|
|
incentive
|
a motivation to undertake an action or to refrain from undertaking in action
|
|
|
product market
|
a market in which finished goods and services are exchanged
|
|
|
household
|
an economic unit consisting of individual or a family
|
|
|
factor market
|
a market in which resources and semifinished products are exchanged
|
|
|
rent
|
a factor payment for the use of land
|
|
|
wage or salary
|
a factor payment for labor service
|
|
|
interest
|
a factor payment for the use of financial capital
|
|
|
factor incomes
|
the return to favtors of produciton as a reqard for productive activity
|
|
|
circular flow diagram
|
an analytical diagram showing the economic relationsships betweent he major sectors of an economic system
|
