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11 Cards in this Set

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Economics
How people, organizations, and society as a whole allocate scarce resources.
Opportunity Cost
What one gives up to undertake an action. The sum of the explicit and implicit costs of an action.
Economic Institutions
Patterns of behavior we come to depend on when interacting with others in society.
Pareto Optimal
An allocation where no individual can be made better off without reducing the welfare of another individual. Pareto Optimal is the same as economic effiency.
Comparitive Advantage
An economic entity's ability to produce a good at a lower opportunity cost than some other entity.
Law of Increasing Costs
The more of something produced the greater the opportunity cost of producing 1 more unit.
Specialization
An economic entity producing only one good or service.
Utility
A measure of satisfaction that the consumption of a good or service will bring.
Marginal Cost
The incrimental increase in opportunity costs resulting from an additional unit of consumption of a particular good.
Marginal Benefit
The incrimental increase to ones benefit resulting from an additional unit of consumption of a particular economic good.
Diminishing Marginal Benefit
The more of an economic good you recieve the less marginal benefit you recieve from that good. (candy example)