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Unformatted text preview: Economic Growth: Increasing technology, ppl, land, etc (total output and new resources) Technological progress in both X and Y: Only on X: Only on Y: Slope of PPF and O.C: Examples: Marginal Rate of Transformation (MRT): The value of the slope of a societys PPF Command Economy: An economy in which a central government either directly or indirectly sets output targets, incomes, and prices. Laissez-faire economy: Economy in which individual ppl and firms pursue their own self-interests w/o any central direction or regulation. Market: The institution through which buyers and sellers interact and engage in exchange. Consumer Sovereignty: The idea that consumers ultimately dictate what will be produced (or not) by choosing what to purchase (and what not to purchase). Free Enterprise: The freedom of individuals to start and operate private businesses in search of profits....
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