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16 Cards in this Set
- Front
- Back
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Output Question
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What? asks what goods & services the economy will produce & in what quantities
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Input Question
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How? asks how the economy will produce its goods & services
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Production Technology
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blueprint or method for transforming inputs into outputs
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Distribution Question
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For Whom? asks who will receive the various goods & services that are produced
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Now Versus the Future Question
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asks whether society will favor the current generation over future generations, or the reverse
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Production Possibilities
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economy's capacity for producing goods & services, assuming that it produces them efficiently
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Production Possibilities Frontier
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graphical representation of the economy's capacity for producing goods & services, assuming that it produces them efficiently
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Demand Pull Inflation
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Price inflation resulting from the attempt to purchase more goods & services than the economy is capable of producing
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Long-Run Economic Growth
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persistent increase in the economy's potential for producing goods & services
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Labor Force Participation
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percentage of population that joins the labor force
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Investment
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flow variable that refers to the increase in the stock of capital during the year
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Flow Variable
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variable that can be measured only with reference to a period of time
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Stock Variable
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variable that can be measured at a given point in time
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Labor Productivity
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amount of output produced per worker
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Investment in Human Capital
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expenditures on education, both formal education received in school & on-the-job training provided by business firms
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Human Capital
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the market value of all accumulated knowledge & skills
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