The flashcards below were created by user
Drizzle
on FreezingBlue Flashcards.
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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.
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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.
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Economic growth
The ability of an economy to produce increasing quantities of goods and services.
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Factor market
A market for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability.
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Factors of production
Labor, capital, natural resources, and other inputs used to produce goods and services.
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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.
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Product market
A market for goods-such as computers- or services-such as medical treatment.
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Property rights
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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