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4 Cards in this Set
- Front
- Back
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What does economics study?
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how societies manage its *scarce* resources
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What is scarcity?
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the limited nature (amount) of a society's resources
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What is the opportunity cost (of a choice)?
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whatever you give up for that choice.
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Is a rational choice for A-san also rational for B-san?
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No, different people have different *opportunity costs*.
(example: A-san is good at football. He makes $100,000 a year playing football every year. B-san sucks at football. He makes $10 a year playing. B-san would lose more money if he changed jobs.) |
