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10 Cards in this Set
- Front
- Back
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Efficiency |
Producing the maximum possible output from available resources |
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Law of Increasing Opportunity Cost |
Each additional increment of one good requires the loss of the other good |
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Economic growth |
An expansion of the economy's production possibilities |
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Rules of the Game |
Laws, customs, manners, conventions and other institutional underpinnings that encourage people to pursue productive activity |
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Absolute advantage |
The ability to make something using fewer resources than other producers require |
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Law of Comparative Advantage |
The worker, firm, or region with the LOWEST OPPORTUNITY COST of producing an output should specialize in that output |
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Specialization |
When individual workers focus on single tasks enabling each worker to become more efficient and productive |
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Barter |
A system of exchange in which products are traded directly for other products |
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Money |
Anything that everyone is willing to accept in exchange for goods and services |
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Division of Labor |
Organizes production process so that each worker specializes in a separate task |
