Chapter One And Two Flashcards
0
Q
What does pox curve illustrate
A
Efficiency
Trade off
Opportunity cost
Economic growth
1
Q
What cause economic growth
A
Bigger labor force
More advanced technology
More resource
Better quality of resource
2
Q
Total cost equals
A
Explicit cost plus implicit cost
3
Q
Three questions all economic system need to answer
A
What to produce
How to produce
For whom we produce, allocation
4
Q
What is a competitive market
A
Lots if buyers and sellers so that individual choices have negligible effect
5
Q
Assumptions made for ppc curve
A
Fix level technology
Fix level labor
Only the goods are related
