Flashcards in Week 1- Problem set Deck (10):
Quantity of goods produced by labor input.
Situation where market do not allocate resources efficiently.
How much society can produce the most from scarce resources.
Between 2 countries. It increases both competition and specialization.
when you give up something to obtain an item.
reflects both value of a good to society and the cost to society of making the good.
The ability to influence matket prices.
In market economy-
firms and households make decision to guide economic activity.
A small, incremental adjustment.