Definitions
Effective utilization of resources
Efficiency
Milk is considered what factor
Land
The Point underneath the PPC curve
Unemployment/inefficiency
In this kind of economy there is major government involvement
Command economy
_______ supply the product market and demand in the resource market
Businesses/firms
Goods used to make consumer goods
capital goods
The are the four factors of production
Land, Labor, Capital, Entrepreneurship
The Point above the PPC curve
Unattainable
In this economy skills are passed from one generation to another
Traditional economy
______= Revenue - Costs
Profit
Unlimited wants limited resources
Scarcity
In what kind of economy does businesses buy the factors of production from individuals
Free market/Capitalism
A decrease in resources cause the PPC to shift what way
Inward/left
Competition and self interest is also known as ""
The invisible hand
Study of the economy of a whole is referred to as _____economics
Macroeconomics
Producer with lowest opportunity cost
Comparative Advantage
What are the characteristics of an entrepreneur?
Take initiative
innovate
act as risk bearers
A population increase shifts what way
Outwards/to the right
This type of economy has little government involvement
Free market
We make decisions by comparing ________ and _______
marginal costs/ marginal benefits
most desirable alternative given up as a result of a decision
Opportunity cost
The two types of capital
human capital and physical capital
The Four shifters of the PPC
Change in
resource, trade, capital, technology
The government answers the three economic questions in this economy
Command economy
You will continue to do something until ________ outweighs ____________
marginal cost, marginal benefit