Micro Economics Vocab Chapter 2

Front 1

production possibility table

Back 1

a table that lists a choice's opportunity costs by summarizing what alternative outputs you can achieve with your inputs

Front 2

output

Back 2

result of an activity

Front 3

input

Back 3

what you put into a production process to achieve an output

Front 4

a production possibility curve

Back 4

a curve measuring the maximum combination of outputs that can be obtained from a given number of inputs

Front 5

principle of increasing marginal opportunity cost

Back 5

in order to get more of something, one must give up ever-increasing quantities of something else

Front 6

comparative advantage

Back 6

the ability to be better suited to the production of one good than to the production of another good

Front 7

productive efficiency

Back 7

achieving as much output as possible from a given amount of inputs or resources

Front 8

inefficiency

Back 8

getting less output from inputs that, if devoted to some other activity would produce more output

Front 9

efficiency

Back 9

achieving a goal using as few inputs as possible

Front 10

laissez-faire

Back 10

an economic policy of leaving coordination of individuals' actions to the market

"let events take their course;leave things alone"

Front 11

outsourcing

Back 11

the relocation of production once done in the united states to foreign countries

Front 12

globalization

Back 12

the increasing integration of economics, cultures, and institutions across the world

Front 13

law of one price

Back 13

the wages of workers in one country will not differ significantly from the wages of (equal) workers in another institutionally similar country