CP Economics Terms Flashcard #4 31-40

Front

An expansion of the economy's production possibilities, or ability to produce.

Back

Economic growth

Front

The ability to make something using fewer resources than other producers require

Back

Absolute advantage

Front

The worker, firm, region, or country with the lowest opportunity cost of producing an output should specialize in that output.

Back

Comparative advantage

Front

Occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.

Back

Specialization

Front

A household's level of satisfaction, happiness, or sense of well-being.

Back

Utility

Front

Legal claim that guarantees an owner the right to use a resource or to charge others for its use.

Back

Private Property Rights

Front

A process of reducing anticompetitive behavior and promoting competition in markets where competition is desirable.

Back

Antitrust Laws

Front

One firm that can serve the entire market at a lower per-unit cost than two or more firms can

Back

Natural monopoly

Front

The federal government's use of taxing and public spending to influence the macroeconomy.

Back

Fiscal policy

Front

The Federal Reserve System's attempts to control the money supply to influence the macroeconomy.

Back

Monetary policy