Term
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Definition
| a situation in which unlimited wants exceed the limited resources available to fulfill those wants |
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| Production Possibilities Frontier (PPF) |
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Definition
| a curve showing the maximum attainable contribution of two products that may be produced with available resources and current technology |
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Definition
| the highest-valued alternative that must be given up to engage in an activity |
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Definition
| the ability of the economy to increase the production of goods and services |
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Term
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Definition
| the act of buying and selling |
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Definition
| the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources |
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Term
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Definition
| the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors |
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Term
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Definition
| a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade |
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Definition
| markets for goods--such as computers--and services--such as medical treatment |
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Definition
| markets for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability |
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Definition
| the inputs used to make goods and services |
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Term
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Definition
| a model that illustrates how participants in markets are linked |
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Definition
| a market with few government restrictions on how a good or service can be produced or sold or how a factor of production can be employed |
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Definition
| someone who operates a business, bringing together the factors of production--labor, capital, and natural resources--to produce goods and services |
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Definition
| the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it |
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