Create an account
Factor of Production--How the other 3 factors are used together to create the final product
The cost of one action due to the giving up of another(ex: going to a football game instead of studying).
Production Possibilities Frontier
A graph comparing the relative cost of producing one good by considering the opportunity cost of another.
The willingness and ability to buy specific quantities of a good at alternative prices in a given period of time, ceteris paribus
The ability and willingness to sell(produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus
The point at which the demand and supply curves/lines cross; leads to no shortage of surplus and maximizes overall profits
The use of market prices and sales to signal desired outputs(or resource allocations)
An imperfection in the market mechanism(ex: price ceiling/floor) that prevents optimal outcomes
Costs(or benefits) of a market activity borne by a third party; the difference between the social and private costs(benefits) of a market activity
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