Term
| production possibillities model |
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Definition
| Model that shows the good and services that an economy is capable of producing-its possibilities-given the factors of production and the technology it has available |
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Definition
| The set of rules that define how an economy's resources are to be owned and how decisions about their use are to be made |
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Definition
| The knowledge that can be applied to the production of goods and services |
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Definition
| A person who, operating within the context of a market economy, seeks to earn profits by finding new ways to organize factors of production |
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Term
| production possibilities curve |
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Definition
| A graphical representation of the alternative combinations of goods and services an economy can produce |
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Term
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Definition
| In producing a good or service, the situation that occurs if the oppurtunity cost of producing that good or service is lower for that economy than any other |
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Term
| law of increasing oppurtunity cost |
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Definition
| As an economy moves along its production possibilities curve in the direction of producing more of a particular good, the oppurtunity cost of additional units of that good will increase |
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Definition
| Situation in which all the factors of production that are available for use under current market conditions are being utilized |
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Definition
| When and economy is operating on its production possibilities curve |
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Definition
| Situation in which the economy is using the same quantities of factors of production but is operating inside its production but is operating inside its production possibilities curve |
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Definition
| The resources available to the economy for the production of goods and services |
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Definition
| The value, or satisfaction, that people derve from the goods and services they consume and the activities they persue |
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Definition
| The human effort that can be applied to the productionof goods and services |
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Definition
| A factor of production that has been produced for use in the production of other goods and services |
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Definition
| The resources of nature that can be ised for the production of goods and services |
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Term
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Definition
| The skills a worker has as a result of education, training, or experience that can be used in production |
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Definition
| Includes money and other "paper" assets (such as stocks and bonds) that represent claims on future payments |
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Definition
| Situation in which an economy is producing the goods and services in which it has a comparitive advantage |
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Definition
| The process through which an economy achieves an outward shift in its production possibilities curve |
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Term
| market capitalist economy |
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Definition
| Economy in which resources are gernerally woned bu preivate individuals who have the paower to make decisions about their use |
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Term
| command socialist economy |
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Definition
| Economy in which government is the primary owner of capital and natureal resources and has broad power to allocate the use of factors of production |
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Term
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Definition
| Economy that combine elements of market capitalist and of command socialist economic systems |
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