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15 Cards in this Set
- Front
- Back
Absolute Advantage
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the ability to produce something more efficiently
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Capital
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productive equipment or machinery
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Comparative Advantage
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the ability to produce something with a lower opportunity cost
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Economics
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a social science that studies how resources are used and is often concerned with how resources can be used to their fullest potential
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Efficiency
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using resouces to their max potential
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Labor
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all human activity that is productive
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land
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all natural resources
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Law of increasing costs
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law that states that when more of a product is initially being produced the higher the opportunity cost will be to produce still more
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Macroeconomics
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economic problems encountere by the nation as a whole
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Microeconomics
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economic problems face by individual units within the overall econ
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Opportunity cost
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amount of one good that must be sacrificed to obtain an alternative good. Opp C of Good X = Change in good Y/ Change in good X
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Postive economics
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economic analysis that draws conclusions based on logical deduction or induction. Value jud. are avoided
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Production Possibilities frontier
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the combo of two goods that can be produced if the economy uses all of its resources fully and efficiently
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Normative Economics
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Economics that involves value judgements
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Resource
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anything that can be used to produce a good or service
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