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Details Title: Chapter 2 Description: Economic Problem - Scarcity + Choice Total Flash Cards: 12 Created: 01/09/2006 16:57:13	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term 3 economic problems Definition 1 - what gets produced 2 - how is it produced 3 - who gets it Term 3 basic resources Definition land, labor, capital Term theory of comparative advantage Definition specialization and free trade would benefit all trading partners even when some are "absolutely" more efficient then others Term absolute advantage Definition if a producer can produce a good or service using fewer resources Term comparative advantage Definition if a producer can produce a good or service at a lower opportunity cost Term comparative advantage Definition if a producer can produce a good or service at a lower opportunity cost Term Production Possibilities Frontier (PPF) Definition graph that shows all combinations of goods and services that can be produced using -full employment of resources -production efficiency Term what 2 factors produce the PPF? Definition full employment of resouces production efficiency Term what is MRT Definition marginal rate of transformation (value of the slope at PPF) Term What causes economic growth Definition more resources better technology