Macro Ch 2 Vocab

cnbunny's version from 2016-03-02 21:36


Question Answer
the ability to produce a good or service, using fewer resources than other producers useabsolute advantage
the ability to produce a good or service at a lower opportunity cost than other producerscomparative advantage
the act of trading with others to obtain what we desireexchange
an economic system in which resources are allocated through individual decision makingmarket economy
a market economy in which the government also plays an important role in allocating resources mixed economy
the amount of money that must be paid to a seller to obtain a good or service price
a curve showing all combinations of two goods that can be produced with the resources and technology currently availableproduction possibilities frontier (PPF)