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10 Cards in this Set
- Front
- Back
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The word "economy" comes from the Greek word oikonomos, which means |
"one who manages a household" |
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The overriding reason as to why households face many economic decisions is that |
resources are scarce |
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Economics is defined as the study of |
how society manages its scarce resources |
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Economics deals primarily with the concept of: |
scarcity |
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Scarcity exists when |
there is less of a good or resource available than people wish to have |
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In most societies, resources are allocated by |
the combined actions of millions of households and firms |
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The adage, "There is no such thing as a free lunch," is used to illustrate the principle that |
people face tradeoffs |
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When the government implements welfare programs, which of the following is likely to occur? |
equity is increased and efficiency is decreased |
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A tradeoff exists between a clean environment and a higher level of income in that |
laws that reduce pollution raise costs of production and reduce incomes |
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The opportunity cost of an item is |
what you give up to get it |
