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17 Cards in this Set
- Front
- Back
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Economy
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A system for coordinating a society's productive activities
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Economics
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Social science that studies production, distribution, and consumption of goods and services
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Market Economy
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All economic decisions are made by individuals
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Invisible Hand
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A process by which an individual's selfish pursuit for self betterment leads to betterment for everyone
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Microeconomics
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Branch of economics that studies individual decisions and how these decisions interact
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Individual Choice
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Limited time and money makes us make choices
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Resource
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Anything used for a productive purpose
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Scarce
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Resources are limited
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Opportunity Cost
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Real cost of doing something
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Sunk cost
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expense that cannot be recovered
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Tradeoff
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Situation where we compare the costs and benefits before taking the next step.
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Marginal Decision
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Decision on whether to do a bit more or a bit less of something
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Incentive
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Anything that gives us a reward for changing behaviour
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Trade
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Situation where we sell goods and services and buy other goods and services
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Specialization
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No one is self sufficient. We all specialize in an area and rely on others specialization to fill our needs.
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Equilibrium
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A position where a change in behavior does not make you better off.
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Market
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An economic phenomenon where buyers come to purchase something and sellers come to sell.
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