production possibilities frontier ( PPF )

______________________ is the

boundary between those combinations of goods and

services that can be produced and those that cannot.

production efficiency

We achieve ________ if we produce goods

and services at the lowest possible cost.

opportunity cost

The ___________ of an action is the highest-valued

alternative forgone.

allocative efficiency 

When goods and services are produced

at the lowest possible cost and in the quantities

that provide the greatest possible benefit, we have

achieved ___________________.

marginal cost

The _____________ of a good is the opportunity cost of

producing one more unit of it.

preferences

people’s likes and dislikes and the intensity

of those feelings.

marginal benefit curve

_________________ , which is a curve that shows

the relationship between the marginal benefit from a

good and the quantity consumed of that good.

economic growth

The expansion of production

possibilities is called ______________ .

Technological change

__________________________- is the

development of new goods and of better ways of producing

goods and services.

Capital accumulation

______________________ is the

growth of capital resources, including human capital .

comparative advantage

A person has a ________________ in an activity

if that person can perform the activity at a lower

opportunity cost than anyone else.

absolute advantage

A person who is more productive than others has an

_______________________.

property rights

The social arrangements that govern the ownership,

use, and disposal of anything that people value are

called ________________.

money

_________ is any commodity or token that is generally

acceptable as a means of payment.

firm

A ________ is an economic unit that hires factors of

production and organizes them to produce and sell

goods and services.

market

In economics, a __________ is any arrangement that

enables buyers and sellers to get information and to

do business with each other

marginal benefit

The _______________from a good or service is the

benefit received from consuming one more unit of

it.