PPC
What do points on the PPC represent?
Efficient use of resources
A schedule lists data in the form of a ____?
table
Who are the two main players in the circular flow model?
Households and Businesses
Land ->
Rent
Consumer expenditures mostly go towards what two things?
What does a point inside the PPC show?
inefficiency
What is the visual version of a schedule?
line graph
In the factor market, households sell ___________ to businesses.
Factors of production
Labor ->
Wages
Dissavings is defined as spending ______ than your current income.
More
What does moving along the PPC demonstrate?
Opportunity cost
What is a strength of a schedule?
Shows exact numbers
In the product market, businesses sell ________ to households.
Goods and Services
Capital ->
Interest
Give an example of a transfer payment.
welfare, subsidies, unemployment, etc.
What does it mean if the PPC shifts outward?
Growth
What is a weakness of a line graph?
Exact numbers may be lost
Government enters the model through taxes, spending and ______ payments.
Transfer
Entrepreneurship ->
Profit
What happens when the government borrowing reduces funds available for businesses?
Why are points outside the PPC unattainable?
They require more resources than are currently available.
Which tool is better for spotting patterns?
line graph
How do money and real goods/services flow relative to each other?
In opposite directions
What discourages the flow of new products in an economy?
Discouraging entrepreneurship
What is it called when the government spends more than it receives?