Week 1- Problem set Flashcards
1
Q
Productivity-
A
Quantity of goods produced by labor input.
2
Q
Market failure-
A
Situation where market do not allocate resources efficiently.
3
Q
Efficiency-
A
How much society can produce the most from scarce resources.
4
Q
Trade-
A
Between 2 countries. It increases both competition and specialization.
5
Q
Opportunity cost-
A
when you give up something to obtain an item.
6
Q
Price-
A
reflects both value of a good to society and the cost to society of making the good.
7
Q
Market power-
A
The ability to influence matket prices.
8
Q
In market economy-
A
firms and households make decision to guide economic activity.
9
Q
Marginal change
A
A small, incremental adjustment.
10
Q
Equality-
A
How evenly the benefit of using resources are distributed among members of society.
