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