ABSOLUTE ADVANTAGE
– The ability of an individual, firm, or country to produce a good or service more efficiently, using fewer resources than another producer.
CAPITAL
– Man-made productive resources, such as machinery, tools, factories, and equipment, used to produce other goods and services.
COMPARATIVE ADVANTAGE
– The ability to produce a good or service at a lower opportunity cost than another producer, even if not more efficient overall.
ECONOMICS
– A social science that studies how individuals and societies make choices about the allocation of scarce resources to satisfy unlimited wants.
EFFICIENCY
– The use of resources in a way that produces the maximum possible output with the minimum waste.
LABOR
– All human effort, both physical and mental, that is used in the production of goods and services.
LAND
– All natural resources used in production, including land, water, minerals, forests, and other raw materials.
LAW OF INCREASING COSTS
– The economic principle stating that as production of a good increases, the opportunity cost of producing additional units also increases.
MACROECONOMICS
– The branch of economics that studies the economy as a whole, including inflation, unemployment, economic growth, and national income.
MICROECONOMICS
– The branch of economics that studies the behavior and decisions of individual consumers, firms, and markets.
NORMATIVE ECONOMICS
– The part of economics that involves value judgments and opinions about what the economy should be like.
OPPORTUNITY COST
– The value of the next best alternative that must be given up when a choice is made.
– The ability of an individual, firm, or country to produce a good or service more efficiently, using fewer resources than another producer.
CAPITAL
– Man-made productive resources, such as machinery, tools, factories, and equipment, used to produce other goods and services.
COMPARATIVE ADVANTAGE
– The ability to produce a good or service at a lower opportunity cost than another producer, even if not more efficient overall.
ECONOMICS
– A social science that studies how individuals and societies make choices about the allocation of scarce resources to satisfy unlimited wants.
EFFICIENCY
– The use of resources in a way that produces the maximum possible output with the minimum waste.
LABOR
– All human effort, both physical and mental, that is used in the production of goods and services.
LAND
– All natural resources used in production, including land, water, minerals, forests, and other raw materials.
LAW OF INCREASING COSTS
– The economic principle stating that as production of a good increases, the opportunity cost of producing additional units also increases.
MACROECONOMICS
– The branch of economics that studies the economy as a whole, including inflation, unemployment, economic growth, and national income.
MICROECONOMICS
– The branch of economics that studies the behavior and decisions of individual consumers, firms, and markets.
NORMATIVE ECONOMICS
– The part of economics that involves value judgments and opinions about what the economy should be like.
OPPORTUNITY COST
– The value of the next best alternative that must be given up when a choice is made.
POSITIVE ECONOMICS
– Economic analysis that is based on facts, data, and logical reasoning, using deduction or induction, and avoids value judgments.
PRODUCTION POSSIBILITIES FRONTIER (PPF)
– A curve showing the maximum combinations of two goods that can be produced when an economy uses all resources fully and efficiently.
RESOURCE
– Anything that can be used to produce a good or service, including land, labor, capital, and entrepreneurship.
TERMS OF TRADE
– The rate at which one good or service is exchanged for another between countries through trade.
– Economic analysis that is based on facts, data, and logical reasoning, using deduction or induction, and avoids value judgments.
PRODUCTION POSSIBILITIES FRONTIER (PPF)
– A curve showing the maximum combinations of two goods that can be produced when an economy uses all resources fully and efficiently.
RESOURCE
– Anything that can be used to produce a good or service, including land, labor, capital, and entrepreneurship.
TERMS OF TRADE
– The rate at which one good or service is exchanged for another between countries through trade.