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16 Cards in this Set

  • Front
  • Back
resources
anything used to produce a good or service
factors of production
land, labor, capital
goods
any tangible thing that people want
services
any intangible thing that people want
economics
study of how individuals/firms/society experience virtually limitless wants
microeconomics
study of choices made by consumers, producers and firms
scarcity
the amount of resources available at any point
market economy
choices made in private markets
market
a collection of buyers and sellers exchanging goods , services or resources
market structure
defined by what is exchanged in the market and also by the degree of competition
opportunity cost
the highest valued alternative forgone in making a choice
marginal cost
additional opportunity cost of producing one more unit
law of increasing costs
as output increases marginal cost increases
characteristics of a perfectly competitive market
many buyers / sellers
perfect information about price
free entry exit
every firm sels the exact same product
law of demand
as price rises quantity demanded falls
law of supply
when price increases, quantity supplied also increases