Section 1
Introducing the Market System
Defining a Market System
A market system is a way to match buyers and sellers.
Gains from Markets
Gains in a market are referred to as total welfare or economic surplus.
Production Possibility Frontier
A production-possibility frontier (PPF) graphs the combinations for the production of two commodities with which the same amounts are used.
The Circular Flow Model
In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy.