Words, Words
Unlimited wants but limited resources
What is scarcity?
PPC
What is the production possibilities curve?
Any point on the PPC
A rising overall price level
What is inflation?
The study of how individuals, households, and firms make choices about scarce resources
What is microeconomics?
Giving up one thing to get something else
What is a trade-off?
TINSTAAFL
What is "There is no such thing as a free lunch"?
Any point beyond the PPC
What is unattainable or impossible?
A period of economic downturn when output and employment are falling
A central authority answers the 3 economic questions
What is a command economy?
Capital is important because it increases this
What is productivity?
AP
What is Advanced Placement?
The exact amount of 1 good that is lost when production of another good increases
What is the opportunity cost?
The sum of the # employed and the # unemployed
What is the labor force?
Education, training, and experience that make a worker more productive
What is human capital?
Rewards or punishments that motivate choices
What are incentives?
AA and CA
What are absolute advantage and comparative advantage?
When an economy acquires new or better resources or new technology, this can happen
What is economic growth? Or What is the PPC shifts outward?
Alternations of economic downturns and upturns
What is the business cycle?
The Father of Modern Economics
Who is Adam Smith?
Anything that can be used to produce a good or service
What is a resource?
LLCE
What are land, labor, capital, and entrepreneurship?
When the PPC is concave to the origin, resources are this
What is specialized?
An economy's total production of goods and services in a given time period
What is aggregate output?
No consumer can be made better off without someone being made worse off
What is allocative efficiency?