Term
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Definition
| whatever must be given up to obtain something |
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Term
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Definition
| a visual model of the economy that shows how dollars flow through markets among households and firms |
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Term
| Production Possibilities Frontier |
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Definition
| how much of two goods can be produced |
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Term
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Definition
| when a person can produce the same amount as another person while using less resources and input |
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Term
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Definition
| when a person has a lower opportunity cost in producing a given good |
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Term
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Definition
| occurs when each party has comparative advantage |
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Term
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Definition
| market that has enough buyers and sellers to not have an effect on price |
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Term
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Definition
| the quantity of a good that people are willing and able to buy |
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Term
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Definition
| when price increases, the quantity demand decreases |
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