Create an account
Someone who changes natural resources, labor, and capital resources into goods and services
circular flow model
A model that shows how a market economy organizes the production and consumption of goods and services
A market in which individuals use the money they received by selling goods and services in the factor markets to make their purchases
production possibilities curve
A model that shows the maximum amount of goods or services that can be produced from a fixed amount of resources in a specific time period
The public goods that are needed to support a population like roads, sewers, buildings, and power plants
The amount of goods and services that a worker can produce in a specific amount of time
The ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources
The ability to produce a good at a lower opportunity cost than another producer
law of comparative advantage
The individual, firm, region, or country with the lowest opportunity cost of producing a particular good should specialize in that good
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