Macro Flashcards
scarcity
a situation where unlimited wants exceed limited resources available to fulfill those wants
macroeconomics
study of the economy as a whole
Production Possibilities Frontier
a curve showing max attainable combinations of 2 products that be purchased with available resources and tech\needs positive data
normative approach
expresses a value judgement regarding a situation as good or bad, desirable or undesirable
positive approach
seeks to understand behavior and operation of systems without judgement/uses facts
economic growth
ability of the economy to increase the production of goods and services
absolute advantage
ability of a firm to produce more a of a good or service with the same amount of resources
comparative advantage
ability of a firm or individual to produce more of a good or service at a lower opportunity cost than competitors
free market
few govt restrictions on how a good or service can be produced or sold or how a factor of production can be employed
property rights
the rights of individuals or firms have the exclusive use of their property