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7 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Micro economics |
The study of how individual firms And the government make decisions and market environments (small) |
Government and individual firms |
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Macro economics |
The study of the economy ( something that changes ) |
Prices ( Such as inflation , Deflation , unemployment, food tuition taxes) |
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Physical Capital |
Tools , Machinery , space to create a good or service |
Can you touch it ( comb brush blow dryer ) |
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Financial capital |
Money or assets used to finance the business |
Sears going bankrupt |
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Rational behavior |
The assumption in economic that people will Make choices in their own best interest |
If you had more money you would figure out how to spread out your grocery money |
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Sunk cost |
Cost that has already been and incured by past action and can not be refunded |
$200 spent on the water pump. Not relevant you already spent the money |
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Law of diminishing returns |
The idea that any additional investment into an activity leads to smaller and smaller benefits |
When you eat something 10 times in a row and you are sick of it |
