Econ yay

private sector

part of the economy that is not controlled directly by the government

public sector

part of the economy that is controlled by the government

factor payment

compensation businesses pay households for using their products ex, wages for labor

subsides

government financial assistance (ex tax breaks)

transfer payment

one way government payment such as social security or unemployment

comparative advantage

producing something at a lower opportunity cost (giving up less of another good).

absolute advantage

being more efficient at producing something (using fewer resources)