PPC
If a point is on the line it means that
all resources are being used efficiently
the fundamental problem that drives economics is
scarcity
An economic system with a combination of command, traditional, and market economies
mixed
free choice in buying and selling (economic action)
voluntary exchange
The social science dealing with the use of scarce resources
Economics
If a point is inside the curve it means that
resources are being used inefficiently
if you have to have something to survive it is a
need
An economic system in which the questions of the economy are answered based on family patterns and rituals
Traditional
the driving force that encourages people to improve their economic situation
profit
The increase in a nation's total output of goods and services over time
If a point is beyond the curve we know that
that level of production is not possible
a tangible product that is useful and transferable in the market
good
An economic system in which the government determines what is produced, how it is produced, and who gets what is produced
command
person who takes economic risks to start new businesses
entrepreneur
consumer good
When you produce more of one thing instead of another, that change in production of thing you did not choose is called
opportunity cost
something used to produce something else (ie) tools, equipment
capital goods
an essential characteristic of a capitalist free enterprise economy is
voluntary exchange
The role of the consumer as the decision maker in the market
consumer sovereignty
natural resources that are used in production
labor
a PPC curve does not tell you ___________________, it only tells you what can be produced
what to produce
the value in dollars of all the final goods and services produced in a country in a year
GDP
market economy in which businesses are privately owned and have the freedom to operate with minimal government intervention
free enterprise economy
the lowest amount of money that someone can be legally paid
minimum wage
the sum of all goods that a person owns, not services they can provide
wealth