Micro Midterm (1-8)

Front 1

Production Possibility Curve

Back 1

a cruve measuring the maximum combination of outputs that can be obtained from a given number of inputs

Front 2

Comparative Advantage

Back 2

the ability to be better suited to the production of one good than to the production of another good

Front 3

Principle of Increasing Marginal Opportunity Cost

Back 3

in order to get more of something, one must give up ever-increasing quantities of something else

Front 4

Inefficiency

Back 4

getting less output from inputs that, if devoted to some other activity, would produce more outputs

Front 5

Monopoly Power

Back 5

the ability of individuals of firms currently in business to prevent other individuals or firms from entering the same kind of business

Front 6

Externality

Back 6

the effective decision on a third party not taken into account by the decision maker

Front 7

Public good

Back 7

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

Front 8

Private good

Back 8

a good that when consumer by one individual cannot be consumed by another individual

Front 9

Progressive Tax

Back 9

a tax whose rates increase as a person's income increases

Front 10

Proportional Tax

Back 10

a tax whose rates are constant at all income levels, no matter what a taxpayers' total annual income is