Unformatted text preview: government plays an important role in overseeing the functioning of the market; governments pass laws that regulate economic life. Society’s Technological Possibilities-Inputs: commodities or serves that are used to produce goods and services-Outputs: the various useful goods are services that result from the production process and are either consumed or employed in the further production.-Factors of production: labor, land, and capital-The opportunity cost of a decision is the value of the good or service foregone-Productive efficiency occurs when an economy cannot produce more of one good without producing less of another good; this implies that the economy is on its PPF...
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- Fall '09
- Economics, Economic Organization, decentralized voluntary markets