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Production Possibilities Frontier
A curve showing the maximum attainable combination of two products that may be produced w available resources and current technology
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Opportunity Cost
The highest valued alternative that must be given up to engage in an activity
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Economic Growth
The ability of the economy to increase the production of goods and services
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Trade
The act of buying and selling
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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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Market
A group of buyers and sellers of a good or service and institution or arragement by which they come together to trade
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Production Markets
Markets for goods such as computers and services such as medical treatment
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Factor Markets
Markets for the factors of production, such as labor capital, natural resources and entrepreneurial ability
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Facotrs of production
The inputs used to make goods and services
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Circular-flow diagram
A model that illiustrates how participants in markets are linked
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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
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Entrepreneur
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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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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