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10 Cards in this Set

  • Front
  • Back
Production Possibility Curve
a cruve measuring the maximum combination of outputs that can be obtained from a given number of inputs
Comparative Advantage
the ability to be better suited to the production of one good than to the production of another good
Principle of Increasing Marginal Opportunity Cost
in order to get more of something, one must give up ever-increasing quantities of something else
Inefficiency
getting less output from inputs that, if devoted to some other activity, would produce more outputs
Monopoly Power
the ability of individuals of firms currently in business to prevent other individuals or firms from entering the same kind of business
Externality
the effective decision on a third party not taken into account by the decision maker
Public good
a good that if supplied to one person must be supplied to all and whose consumption by one individual does not prevent its consumption by another individual
Private good
a good that when consumer by one individual cannot be consumed by another individual
Progressive Tax
a tax whose rates increase as a person's income increases
Proportional Tax
a tax whose rates are constant at all income levels, no matter what a taxpayers' total annual income is