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15 Cards in this Set
- Front
- Back
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PPF - production possibilities frontier |
attainable inside and on line eff ineff when resources unemployed / misallocated |
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tradeoff |
move along PPF |
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opty cost |
tradeoff |
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PPF bows out |
BC not equally productive opty cost increases as Q increases |
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MC |
the opty cost of producing one more |
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MB |
benefit by consuming 1 more measured by how much ones WTP for 1 more |
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decreasing MB |
more G = less MB = less WTP for 1 more |
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MB curve |
MB vs Q consumed |
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allocative eff |
cant produce 1 more w/o giving up another w greater ben eff when MC=MB |
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econ coordination - 4 complimentary social inst |
1. firm 2. market 3. property rights 4. money |
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circular flows thru markets |
factor markets, households, goods markets, firms GS flows and money flows |
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markets coord ind decisions thru |
P adjustments |
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comparative adv |
opty costs produce at lower opty cost than anyone else |
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absolute advantage |
productivity more productive than others |
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gains from trade |
- produce G w comp adv - trade (half gains) - gains |
