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8 Cards in this Set
- Front
- Back
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Scarcity
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the situation in which the unlimited wants exceed the limited resources available to fulfill those wants.
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Production Possibilities Frontier (PPF)
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is a curve showing the maximum alternative combinations of two products that may be produced with available resources. The slops is used to measure the opportunity cost of increasing the production of one good along the frontier related to the other good.
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Circular flow chart
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diagram that shows buyers (households), sellers (firms), interact in both the product and factor markets.
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Absolute Advantage
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ability of an individual, firm or country to produce one more of a good or service that the competitors using the same amount of resources.
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Comparative advantage
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ability of an individual, firm or country to produce a good at a lower opportunity cost than the other producers
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Product markets
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markets for goods such as computers and services.
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Factor markets
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market for the factors of production such as labor, capital, natural resources and entrepreneurial ability.
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Free market
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market with few government restrictions on how a good or service can be sold
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