Review Terms And Concepts (WK2)
absolute advantage
- A producer has an absolute advantage over another in the production of a good or service if he or
she can produce that product using fewer resources.
capital -
Things that are produced and then used in the production of other goods and services.
command economy
- An economy in which a central government either directly or indirectly sets output targets, incomes,
and prices.
comparative advantage -
A producer has a comparative advantage over another in the production of a good or service if
he or she can produce that product at a lower
opportunity cost
.
consumer goods
- Goods produced for present consumption.
consumer sovereignty -
The idea that consumers ultimately dictate what will be produced (or not produced) by choosing
what to purchase (and what not to purchase).
This is the end of the preview.
Sign up
to
access the rest of the document.
- Spring '10
- GraceOnodipe
- Microeconomics, Comparative Advantage, producer, production possibility frontier
-
Click to edit the document details