Unit 1 Keywords
- Created by: Shannon Savage
- Created on: 07-05-13 10:48
Other questions in this quiz
2. Market Failure
- When governments do not intervene in the market so they do not work as well
- When resources are inefficiently allocated due to imperfections in the price mechanism
- When markets are in decline due a lack of demand for the goods and services it produces
3. Production Possibility Frontier
- Shows the two different possibilities of how an economy can turn out
- Shows the maximum output of two goods when all resources are used fully and effieciently
- Shows the minimum output of two goods when all resources are used fully and efficiently
4. Private Costs
- Costs imposed directly by the individual producer or consumer from economic activity
- Costs imposed on a third party from economic activity
- Costs imposed on the government from economic activity
5. Social Costs
- The costs of social interaction on the economy
- The total cost to society of an economic transaction
- The cost to socially active people from a economic transaction
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