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Related Flashcards
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 society getting the most it can from its scarce resources.
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Equity
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The property of distributing economic prosperity fairly 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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Rational People
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People who systematically and purposefully do the best they can to achieve their objectives.
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Marginal Changes
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Small incremental adjustments to a plan of action.
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Incentive
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Something that induces a person to act
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Market Economy
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Economy that allocates resources through the decentralized desisions of many firms and households as they interact in markets for goods and services.
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Property rights
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The ability of an individual to own and excise control over scarce resources.
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Market failure
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A situation in which a market left on its own fails to allocate resources efficiently
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Externality
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The impact of one person's actions on the wellbeing of a bystander.
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Market power
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The ability of a single economic actor(or small group of actors) to have a substantial influence on market prices.
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Productivity
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The quantity of goods and services produced from each hour of a worker's time
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Inflation
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An increase in the overall level of prices in the economy.
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