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16 Cards in this Set
- Front
- Back
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Scarcity
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The limited nature of society's resources
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Economics
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The study of how society manages its scarce resources
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Efficiency
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The property of society getting the most it can from its scarce resources.
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Equality
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The property of distributing economic prosperity uniformly among the members of society.
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Opportunity Cost
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Whatever must be given up to obtain some item
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Rational People
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People who systematically and purposefully do the best they can to achieve their objectives.
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Marginal Change
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A small incremental adjustment to a plan of action
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Incentives
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Something that induces a person to act
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Market Economy
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An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.
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Property Rights
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The ability of an individual to own and exercise control over scarce resources
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Market Failure
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A situation in which a market left on its own fails to allocate resources efficiently
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Externality
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The impact of one person's actions on the well-being of a bystander
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Market Power
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The ability of a single economic actor (or small group of actors) to have a substantial influence on market prices.
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Productivity
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The quantity of good sand services produce from each unit of labor input
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Inflation
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An increase in the overall level of prices in the economy
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Business Cycle
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Fluctuations in economic activity, such as employment and production
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