Fundamentals
An object that can be bought by a consumer
Good
Anything on the PPF is considered
Effective
This economic system is based on customs, traditions, and system of trading.
What is a traditional economy
When someone performs some sort of action for a consumer
Service
ALL the alternatives that we give up when making a choice
What is trade-off
These are used in order to get people to start/stop doing something
What are incentives
Cuba, North Korea, U.S.S.R. are all examples of this economic system
What is a command market
Basic economic question that decides where to use resources in
"What to produce"
Water, sunlight, plants, animals are all examples of this
natural resources (Land)
People are part of this group in the Circular Flow Diagram
Household
Anything outside the PPC is considered
Unattainable
Government system where there is no private property
Communism
Basic economic question that answers what group of people to produce goods and services for
"Whom to produce?"
This factor of production combines Land, Labor & Capital
What is an Entrepreneur
Business and Companies are considered this part of the Circular Flow Diagram
Firms
PPF stands for
Production Possibilty Frontier
This government system is based on free choice and competition
Capitalism
A new oven at Domino's Pizza is this factor of production.
Capital
Product Market
One event that will cause PPF or Curve to shift to the right
-More Natural Resource
- Increase in Population
- Better Technology
An economic system that has charateristics of both market and command economic systems
What is a mixed economy