Term
| Production Possibilities Frontier |
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Definition
| PPF, A curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. |
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Definition
| The highest valued alternative that must be given up in order to engage in a given activity. |
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Definition
| The ability of the economy to produce increasing quantities of goods and services. |
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Term
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Definition
| The act of buying and selling. |
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Term
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Definition
| The ability of an individual, a firm, or a country to produce more of a good or service than competitors using the same amount of resources. |
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Term
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Definition
| The ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost that competitors. |
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Definition
| A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade. |
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Term
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Definition
| Markets for goods--such as computers--and services--such as medical treatment. |
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Term
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Definition
| Markets for the factors of production. |
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Term
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Definition
| Labor, Capital, Natural Resources, and Entrepreneurial Ability. |
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Term
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Definition
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Term
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Definition
| Physical capital, such as computers and machine tools, that are used to produce other goods. |
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Term
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Definition
| Land, water, iron ore, oil, and other raw materials that are used in producing goods. |
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Term
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Definition
| A person who operates a business, carries a connotation of risk taker. |
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Term
| Two key groups that participate in Markets (2.3) |
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Definition
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Term
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Definition
| Suppliers of factors of production. Mostly labor. |
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Term
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Definition
| Suppliers of goods and services. |
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Term
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Definition
| A model that illustrates how participants in markets are linked. |
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Term
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Definition
| 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. |
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Term
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Definition
| The rights individuals or firms have the exclusive use of their property, including the right to buy or sell it. |
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Term
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Definition
| Tangible, like land or a store or a factory, or Intangible, like an idea. |
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