Term
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Definition
| deals with economic FACTS/ cause and effect |
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Term
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Definition
| deals with subjective perspectives of the economy |
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Term
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Definition
| unlimited wants/needs but limited resources |
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Term
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Definition
1) raw materials
2) labor
3) physical capital (things used to produce consumer goods)
4) entrepreneurial ability |
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Term
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Definition
| more resources, improved efficiency, labor, technology |
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Term
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Definition
| to stretch the budget line |
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Term
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Definition
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Term
| PPC goods assumptions (ideal) |
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Definition
1) between the two goods (consumer vs. capital)
2) fixed level of resources
3) fixed level of technology
40 full employment |
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Term
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Definition
production of ANY particular mix of goods/services in the least costly way
(ON THE LINE) |
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Term
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Definition
| production of A particular mix of goods/services in the least costly way BUT MOST DESIRED BY SOCIETY |
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Term
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Definition
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Term
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Definition
| buys/sells "factors" (resources) |
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Term
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Definition
goods/services/products
wage/salary/interest/rent/profit |
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Term
| Households --> Businesses |
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Definition
cash/credit/debit/checks
factor market |
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Term
| characteristics of a market system |
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Definition
-private property
-freedom of enterprise/choice
-self interest
-competition
-markets set prices
-technology and capital goods
-specialization
-money
-limited but active government |
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Term
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Definition
-division of labor
-geographic specialization |
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Term
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Definition
group A offers to trade with group B, but group B doesn't want to trade with what group A offers
***money solves this problem because everyone wants money!!*** |
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Term
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Definition
group A offers to trade with group B, but group B doesn't want to trade with what group A offers
***money solves this problem because everyone wants money!!*** |
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Term
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Definition
-growth
-full employment
-price stability
-economic efficiency
-economic freedom
-equittable distribution of income
-economic security
-balance of trade |
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Term
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Definition
secured companies for certain goods for an area to maximize efficiency
(gas/water/cable/trash/electric) |
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