Absolute (Money) Price

Producers’ (Sellers’) Surplus (PS) The
difference between the price sellers receive
for a good and the minimum or lowest price
for which they would have sold the good.
PS 5 Price received 2 Minimum selling
price.
Production Function A function that
specifies the relation between technology
and the quantity of factor inputs to output
or Real GDP.
Production Possibilities Frontier (PPF)
The possible combinations of two goods that
can be produced in a certain period of time
under the conditions of a given state of technology and fully employed resources.
Productive Efficiency The situation
when a firm produces its output at the
lowest possible per-unit cost (lowest ATC ).
Productive Efficient The condition
where the maximum output is produced
with the given resources and technology.
Productive Inefficient The condition
where less than the maximum output is
produced with the given resources and technology. Productive inefficiency implies that
more of one good can be produced without
any less of another being produced.
Profit The difference between total revenue
and total cost.
Profit Maximization Rule Profit is
maximized by producing the quantity of
output at which MR 5 MC.
Progressive Income Tax An income tax
system in which one’s tax rate rises as taxable
income rises (up to some point).