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9 Cards in this Set
- Front
- Back
scarcity
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the perpetual state of insufficiency of resources to satisfy people's unlimited wants
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economics
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the study of how people work together to transform resources into goods and services to satisfy their most pressing wants and how they distribute these goods and services
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consumer sovreignty
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the ability of consumers to exercise complete control over what goods and services the economy produces (or doesn't) by choosing which goods and services to buy
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ceteris paribus
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"everything else equal" "holding constant" helps pin-point cause-and-effect relationships
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microeconomics
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a subarea of economics that analyzes individuals as consumers and producers and specific firms and industries. It focuses especially on the market behavior of firms and households
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macroeconomics
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a subarea of economics that analyzes the behavior of the economy as a whole
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positive economics
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a subset of economics that analyzes the way the economy actually operates
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normative economics
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a subset of economics founded on value judgments and leading to assertions of what ought to be
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invisible hand
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adam smith's concept of the market which as if it were a hand, guides firms that seek only to satisfy their own self-interest to produce precisely those goods and services that consumers want
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