Markets
This is any individual, group, or organization that purchases goods or services for their own use.
Consumer
This is the cost of a product and is influenced by supply and demand.
Price
These are the natural resources used in production.
Land
This is the type of unemployment that naturally occurs as people constantly look for new and better jobs.
Frictional Unemployment
This is the value of the next best alternative not taken or given up in an economic decision.
Opportunity Cost
This is any individual, group, or organization that creates a good or provides a service to be sold in a product market.
Producer
This refers to the amount of goods or services producers are willing to produce in the product market.
Supply
This is the human effort and skills needed to produce goods and services.
labor
This is the unemployment that occurs because workers' skills or locations do not match the jobs available
Structural Unemployment
This is the basic economic issue that all resources are limited while human wants are virtually unlimited.
Scarcity
This is the market where producers and consumers interact, purchasing goods and services.
Product Market
Demand
These are the man made resources needed to produce such machinery and equipment
Capital
This is the type of unemployment that occurs because there is a decline in economic activity, such as during a recession when businesses reduce production and lay off workers.
Cyclical Unemployment
The belief that scarce resources will be applied in the most efficient way in order to maximize profits.
The invisible hand
This is the market used by producers to purchase the different factors needed to create their good or provide their service.
Factor Market
If supply is low and demand is high, this will happen to prices.
Prices will rise/increase
This is when someone organizes all of the factors of production together in order to produce a finished product or service to the product market.
Entrepreneurship
increase/rise
The graph that shows the maximum combinations of two goods an economy or producer can produce using its available resources and technology efficiently.
Production Possibilities Frontier/PPF
This is the rivalry between producers who sell a similar products in a market as the work to attract customers by offering lower prices or better features.
Competition
If prices are high this will happen to the demand of consumers.
it will lower/decrease
This will happen to the supply of a product in the product market if one of its factors of production becomes MORE EXPENSIVE AND LESS AVAILABLE in the FACTOR MARKET.
This lowers costs and makes production more efficient, but can increase unemployment as it replaces workers
True or False: If a PPF shows production below the line that represents the frontier or limit of production, then that producer is operating efficiently.
False