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Related Flashcards
Cards In This Set
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Economics
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Study of how people deal with scarcity
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Scarcity
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Situation in which the quantity of resources is insufficient to meet all wants
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Choice
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A selection among alternative goods, services, or actions
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Economic Interactions
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Exchange of goods and services between people
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Market
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Arrangement by which economic exchanges between people take place
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Opportunity Cost
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Value of next-best forgone alternative was not chosen because something else was chosen
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Gains from Trade
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Improvements in income, production, or satisfaction owing to the exchange of goods or services
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Specialization
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A concentration of production effort on a single specific task
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Division of Labor
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The division of production into various parts in which different groups of workers specialize
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Comparative Advantage
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A situation in which a person or group can produce one good at a lower opp cost than another person or group
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International Trade
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Exchange of goods and services between people or firms in different nations
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Production Possibilities
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Alternative combination of production of various gods that are possible, given the econ resources
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Increasing Opportunity Cost
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A situation in which producing more of one good requires giving up an increasing amount of production of another good
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Production Possibilities Curve
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A curve showing the maximum combo of production of two goods that are possible, given the econ resources
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Market Economy
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Economy that is freely determined prices and free exchanges of goods and services in a market
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