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  1. Production Possibilities Frontier
    A curve showing the maximum attainable combination of two products that may be produced w available resources and current technology
  2. Opportunity Cost
    The highest valued alternative that must be given up to engage in an activity
  3. Economic Growth
    The ability of the economy to increase the production of goods and services
  4. Trade
    The act of buying and selling
  5. 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.
  6. Market
    A group of buyers and sellers of a good or service and institution or arragement by which they come together to trade
  7. Production Markets
    Markets for goods such as computers and services such as medical treatment
  8. Factor Markets
    Markets for the factors of production, such as labor capital, natural resources and entrepreneurial ability
  9. Facotrs of production
    The inputs used to make goods and services
  10. Circular-flow diagram
    A model that illiustrates how participants in markets are linked
  11. Free Market
    A market with few gov. restrictions on how a good or serv. can be produced or sold or on how a factor of productionn can be employed
  12. Entrepreneur
    Someone who operates a business, bringing together the factors of production, labor capital, and natural resources to produce goods and services
  13. Property Rights
    The rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it.
Card Set
Trade Off Comparative Advantage & market system
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