question
A production possibilities frontier (PPF) is
answer
a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology
question
The primary difference between absolute and comparative advantage is
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absolute advantage refers to the ability to produce more of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost
question
The basis for trade is _____ advantage
answer
Comparative
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One of the great benefits of trade is
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That it makes it possible for society to become better off by increasing both its production and its consumption.
question
Two key groups participate in markets. A ___ consists of all the individuals in a home. ___ are suppliers of goods and services.
We can use a simple economic model called the _____ to see how participants in markets are linked.
We can use a simple economic model called the _____ to see how participants in markets are linked.
answer
household
firms
circular flow diagram
firms
circular flow diagram
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An _____ is someone who operated a business, bringing together the factors of production—labor, capital and natural resources—to produce goods and services
answer
entrepreneur
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A free market exists
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d. When the government places few restriction on how a good or service can be produced or sold or on how a factor of production can be employed.
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The Scottish philosopher Adam smith argued in 1776 that
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c. Prices would do a better job coordination the activities of buyers and sellers that guilds could.
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The primary difference between product markets and factor market is that
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b. Product markets are markets for goods, while factor markets are markets for factors of production --- labor, capital, natural resources, and entrepreneurial ability.
question
Property rights are
answer
b. The rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it.
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