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Flashcards in Chapter 3 Deck (14):
1

Production Process

Turns inputs into consumable outputs

2

Consumable Outputs

Goods & Services

3

Resources/ Inputs

-Natural Resources
-Labor
-Capital
-Entrepreneurship

4

Technology

The way that inputs are combined to produce output

5

Make Work Fallacy

The idea that jobs are valuable, whether or not the labor's production adds value

6

Law of Increasing Opportunity Costs

As more of 1 good is produced, the opportunity costs of that good increases, in terms of the other good that is sacrificed

7

Economic Growth

An expansion of an economy's productive capabilites

8

Human Capital

ones education and training

9

The invisible Hand

people looking out for their own self-interests inevitably helps others

10

Who is a middleman?

Errbody.

middlemen are valuable because people pay them

11

The Wealth of a country lies in that country's _____

Consumable goods and services

12

PPF is a straight line if.....

All resources were equally productive

13

PPF is bowed outward because.....

the Law of Increasing Opportunity Costs

14

Butchers, Bakers and Brewers

Labor is NOT done out of generosity or love for someone, but a desire to benefit themselves