Econ Fundamentals Vocab - Searcy

The ability of a nation to produce more total units of a good or service

• Absolute Advantage

• Comparative Advantage

• Entrepreneurship

• Opportunity Cost

Distributing a scarce resource

• Allocation

• Allocation Strategies

• Productivity

• Opportunity Cost

Various methods for the distribution of scarce resources

• Allocation Strategies

• Allocation

• Market Economy

• Capital Goods

Goods which effect productivity over time, lead to long term growth

• Capital Goods

• Consumer Goods

• Factors of Production

• Voluntary Exchange

Economic system where the 3 economic questions are answered by the government

• Command Economy

• Market Economy

• Traditional Economy

• Market Failure

The ability of a nation to produce a good or service at a lower opportunity cost

• Absolute Advantage

• Comparative Advantage

• Market Economy

• Productivity

Products (the end result of production and manufacturing) bought for consumption by the average consumer.

• Capital Goods

• Consumer Goods

• Productive Goods

• Factors of Production

Meaning that the buyers dictate which goods will be produced

• Market Superiority

• Consumer Sovereignty

• Command Economy

• Incentive

Giving workers specific tasks with the end goal of workers becoming more productive using resources

• Division of Labor

• Factors of Production

• Human Resources

• Productive Resources

Goal of a market to make the best use of its resources, using inputs (factors of production) in a manner that keeps production costs as low as possible

• Economic Efficiency

• Efficiency

• Productive Efficiency

• Maximum Efficiency