Economics 2

  1. property rights
    the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it
  2. entrepreneur
    someone who operates a business, bringing together the factors of production to produce goods and services
  3. free market
    a market with few government restrictions on how a good or service can be produced or sold or on how a factor of production can be employed
  4. circular-flow diagram
    a model that illustrates how participants in markets are linked
  5. factors of production
    the inputs used to ake goods and services
  6. factor markets
    markets for the factors of production, such as labour, capital, natural resources, and entreprenuerial ability
  7. product markets
    markets for goods and services
  8. market
    a group of buyers and sellers of a good or service and the institution or arrangement by which the come together to trade
  9. comparative advantage
    the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
  10. absolute advantage
    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
  11. economic growth
    the ability of the economy to increase the production of goods and services
  12. opportunity cost
    the highest valued alternative that must be given up to engage in an activity
  13. PPF
    a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology
  14. scarcity
    a situation in which wants exceed the limited resources available to fulfill those wants.
Card Set
Economics 2