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24 Cards in this Set

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  • Back
Scarcity
A situation in which resources are limited and can be used in different ways
Natural resources
things created by acts of nature and used to produce goods and services
Labor
Human effort including both mental and phyisical to produce goods and services
Physical Capital
Objects made by humans to produce goods and services
Human Capital
the knowledge and skill acquired by a worker through education and experience and used to produce goods and services
Entrepreneurship
effort used to coornate the production and sale of goods and services
Production Possiblily Curve
PPC
A curve that shows the possible combinations of goods and services available to an economy.
Market
An arrangement that allows buyers and sellers to exchange things. A buys exchanges money or an object
Marginal Change
A small change in value
Opportunity Cost
A measure of something that can take on a different value
Marginal Benefit
the extra benefit resulting from a small increase in some activity
marginal cost
the additional cost resulting from a small increase in some activity.
Nominal Value
the face value of an amount of money
real value
the value of an amount of money in terms of the quanity of goods the money can buy
positive relationship
relationship in which an increase in the value of one variable increases the value of another variable.
Negative Relationship
a relationship in which an increase in the value of one variable will decrease the value of another variable
Slope of a curve
the change in the varibale on the vertical axis resulting from a one unit increase.
Market Equilibrium
a situation in which the quanity od a product demanded equals the quanity supplied
Explicit cost
the firms actual cash payments for its input
implicit cost
the opportunity cost of nonpurchased input
Economic cost
explicit cost plus the implicit cost
fixed cost
cost that does not depend on the quanity produced
DiseconomiC Scale
a situaton in which an increase in quanity produced increases the long run average cost of production
Total revenue
the money the firm gets by selling its products, equal to the price times the quanity sold.