Ewanga

capitalism - Economic system in which private citizens own and use the factors of production in order to generate profits. command economy - Economic system characterized by a central authority that makes most of the major economic decisions.

Scarcity - A situation in which unlimited wants exceed the limited resources available to fulfill those wants Production Possibilities Frontier (PPF) - A curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology

allocative efficiency - when the mix of goods produced represents the mix that society most desires budget constraint - all possible consumption combinations of goods that someone can afford, given the prices of goods, when all income is spent; the boundary of the opportunity set comparative advantage -

circular flow diagram - factors of production - markets for goods and services -

Economics - the study of how humans make decisions in the face of scarcity Scarcity - human wants for goods, services and resources exceed what is available Division of labor -

Scarcity - Economics - Efficiency -

Scarcity - the limited nature of society's resources Economics - the study of how society manages its scarce resources Efficiency -

Gross Domestic Product (GDP) - ways to compute GDP Expenditure Approach - way to compute GDP-

Principle 1 - People face trade offs -Trade-offs are losing one quality or aspect of something in return for gaining another aspect or quality Principle 2 - The cost of something is what you give up to get it -Based on the idea that nothing is free -People make decisions based on cost and benefit

division of labor - economics - economies of scale -