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http://www.amazon.com/Craig-Medico/e/B00FSFSR5C/ref=dp_byline_cont_book_1 In this No Bull Review Session for students of AP Economics, we review the fundamentals of the Circular Flow Model. Video number 4 of the series recaps the interactions of businesses and households through the factor and product markets. Good for Macroeconomics students!

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an item that yields positive benefits to people

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Relationship Between Opportunity Cost and Trade Off

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Relationship Between Opportunity Cost and Trade Off

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increase in the amount of goods and services produced per head of population over a certain amount of time

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what to produce?
how to produce?
for whom to produce?

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a person who combines the other factors of production to earn a profit

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machinery, tools, and buildings used in production

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the effort that people contribute to production of goods and services

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any natural resource used to produce a good or service

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economic system combining private and public enterprise

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traditions, customs, and beliefs shape the economy

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economic decisions are made by a central government

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economic decisions are made by the people

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point c- inefficient
point a and b- efficient
point d- impossible

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must be desired or wanted
must be limited