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Details Title: Principles of Macroeconomics Description: Macroeconomics Total Flash Cards: 9 Created: 01/17/2007 15:02:23	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 Opportunity Cost Definition whatever must be given up to obtain something Term Cicular Flow Diagram Definition a visual model of the economy that shows how dollars flow through markets among households and firms Term Production Possibilities Frontier Definition how much of two goods can be produced Term Absolute Advantage Definition when a person can produce the same amount as another person while using less resources and input Term Comparative Advantage Definition when a person has a lower opportunity cost in producing a given good Term Trading Definition occurs when each party has comparative advantage Term Comparative Market Definition market that has enough buyers and sellers to not have an effect on price Term Quantity Demand Definition the quantity of a good that people are willing and able to buy Term Law of Demand Definition when price increases, the quantity demand decreases