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Related Flashcards
Related Topics
Cards In This Set
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Scarcity
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The limited nature of society's resources
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Economics
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The study of how society manages its scarce resources
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Efficiency
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The property of sociey getting the most it can from its scarce resources
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Equality
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Property of distributing economic prosperity uniformly among the members of society
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Opportunity Cost
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Whatever must be given up to obtain some item
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Marginal change
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A small incremental adjustment to a plan of action
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Market economy
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Economy that allocates resources through the decentralized decisions of many firms and households as they inteact in markets for goods and services
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Markey failure
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A situation in whihc a market left on its own fails to allocate resources efficiently
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Externality
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The impact of ones person's actions of the well-being of a bystander
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Market power
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Ability of a single economic actor to have a substantial influence on market prices
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Productivity
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The Q of goods and services produced from each unit of labor input
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Inflation
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Increase in the overall level of prices in the economy
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Prod. possibilities frontier
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Graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available technology
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Absolute Advantage
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Ability to produce a good using fewer inputs that another producer
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Comparative Advantage
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Ability to produce a good at a lower opp cost that another producer
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