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Definition
| the ability of one producer to make more than another producer with the same quantity of resources |
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| goods that help produced other valuable good and services in the future |
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Definition
| the concept under which economists examine a change in one variable while holding everything else constant |
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Definition
| goods produced for present consumption |
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Term
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Definition
| the variables that can be controlled for in a model |
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Term
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Definition
| the variables that cannot be controlled for in a model |
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Term
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Definition
| the process of using resources to create or buy new capital; private spending on tools, plant and equipment used to produce future output |
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Term
| law of increasing relative cost |
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Definition
| law stating that the opportunity cost of producing a good rises as a society produces more of it |
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Term
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Definition
| an opinion that cannot be tested or validated |
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Term
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Definition
| an assertion that can be tested and validated |
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Term
| production possibilities frontier |
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Definition
| a model that illustrates the combinations of outputs that a society can produce if all of its resources are being used efficiently |
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