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10 Cards in this Set
- Front
- Back
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Economics is a ______. |
Social science |
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Free good |
A good that is not scarce |
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The three fundamental questions of economics are: |
1. What should be produced? 2. How should the goods be produced? 3. Who should produce these goods? |
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Factors of production |
The resources the economy has available to produce goods and services. |
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Labor |
The human effort used to produce goods and services. |
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Natural resources |
Things found in nature used to produce goods and services. |
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Specialization |
When an economy that is producing the goods and services has a comparative advantage. |
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Production possibilities curve |
Shows the combinations of two goods an economy is capable of producing |
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Specialization causes: |
- Lower switching costs - More adaptive technology - More productivity - lower diversification (higher risks) - Higher cooperation costs |
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Economic growth is the result of ______. |
Increasing the quality or quantity of an economys factors of production and advances in technology. |
