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18 Cards in this Set

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  • Back
Full Employment
The use of all available resources. All workers who are willing & able to work.
Full Production
Employment of available resources so that the max amt of (or total value of) goods & services is produced.
Productive Efficiency
The production of a good in the least costly way.
Allocative Efficiency
The output of each product at which its marginal cost & price or marginal benefit are equal.
Consumer Goods
Products & services that satisfy human wants directly.
Production Possibilities Table
Lists the different combinations of two products that can be produced w/ a specific set of resources.
Production Possibilities Curve
A curve showing the different combinations of two goods or services that can be produced.
Opportunity Cost
The amt of other products that must be forgone or sacrificed to produce a unit of a product.
Law of Increasing Opportunity Costs
The principle that as the production of a good increases, the opportunity cost of producing an addtional unit rises.
Economic Growth
An outward shift in the production possibilities curve...an increase of real output (GDP) or real output per capita.
Economic System
A method of organizing an economy (market & command systems being the two general types)
Market System
Product & resource markets of a mkt economy & the relationships among them.
Capitalism
An economic system in which property resources are privately owned & mkts & prices are used to direct & coord economic activities.
Command System
An economic system in which property resources are publicly owned & govt uses central economic planning to direct & coord economic activities.
Resource Market
A mkt in which households sell and firms buy resources or the services of resources.
Resource Market
A mkt in which households sell & firms buy resources or the services of resources.
Product Market
A mkt in which products are sold by firms and bought by households.
Circular Flow Model
The flow of resources from households to firms and of products from firms to households. These flows are accompanied by reverse flows of $ from firms to households & from households to firms.