Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
PPF |
Production Possibilities Frontier - A curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology |
|
|
Opportunity cost |
The highest-valued alternative that must be given up to engage in an activity |
|
|
Scarcity |
A situation in which unlimited wants exceed the limited resources available to fulfill those wants |
|
|
Economic growth |
The ability of the economy to increase the production of goods and services |
|
|
Trade |
The act of buying and selling |
|
|
Absolute advantage |
The ability of an individual, or firm, or a country to produce more of a good or service than competitors, using the same amount of resources |
|
|
Comparative advantage |
The ability of an individual, or firm, or a country to produce a good or service at a lower opportunity cost than competitors |
|
|
Market |
A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade |
|
|
Product market |
A market for goods (computers) or services (medical treatment) |
|
|
Factor market |
A market for the factors of production (labor, capital, natural resources, entrepreneurial ability) |
|
|
Factors of production |
The inputs used to make goods and services |
|
|
Circular-flow diagram |
A model that illustrates how participants in markets are linked |
|
|
Free market |
A market with few government restrictions on how a good or service can be produced or sold or on how a factor of production can be employed |
|
|
Entrepreneur |
Someone who operates a business, bringing together the factors of production (labor, capital, natural resources) to produce goods and services |
|
|
Property rights |
The rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it |
