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15 Cards in this Set

  • Front
  • Back
Scarcity
- the shortage that exists when less of something is available than is wanted at a zero price
Economic Good
- any item that is scarce
free good
- a good for which there is no scarcity
economic bad
- any item for which we would pay to have less
resources, factors of production, or inputs
- goods used to produce other goods, i.e. land, labor, and capital
land
- all natural resources, such as minerals, timber, and water, as well as land itself
labor
- the physical and intellectual services of people, including the training, education, and abilities of the individuals in society
capital
- products such as machinery and equipment that are used in production
rational self-interest
- the means by which people choose the options that give them greatest amount of satisfaction
normative analysis
- analysis of what ought to be
- conclusions based on opinion or value judgements do not advance one's understanding of events
fallacy of composition
- the mistaken assumption that what applies in the case of one applies to the case of many
fallacy of composition
- the mistaken assumption that what applies in the case of one applies to the case of many
association as causation
- the mistaken assumption that because two events seem to occur together, one causes the other
microeconomics
- the study of economics at the level of the individual
macroeconomics
- the study of the economy as a whole