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28 Cards in this Set
- Front
- Back
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Scarcity |
Our needs are unlimited while our resources are limited, the economizing problem |
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Opportunity Cost |
The forgone alternative of the choices we make. |
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Economic Resources |
Land, labor, capital, and the entrepreneur |
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Human Factor |
The spectrum of personality characteristics and other dimensions of human performance that enable social economic and political institutions to function |
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Positive Statements |
Relate to what is, was, and will be |
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Normative Statements |
Deal with what one believes ought to be |
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Analytical Statements |
Conditional statements |
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Fallacy |
A misconception, error or false notion |
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Stages of a Theory |
Problem, hypothesis, research design, measurement, data collection, data analysis, generalization |
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Production Possibility Frontier (PPF) |
Its significance in illustrating scarcity, choice, opportunity cost, production efficiency, and inefficiency |
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Demand |
Is want or desire backed by purchasing power |
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Law of Demand |
The lower the price, the greater the quantity demanded; the higher he price, the lower the quantity demanded |
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Substitution Effect |
If one company changed the price, the other commodities quantity will increase |
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Complimentary Goods |
If a complimentary commodities price goes down, then the quantity of the other good will increase |
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Law of Diminishing Marginal Utility |
The more one consumes of a product, the satisfaction lowers |
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Determinants of Demand |
Price of the commodity, price of similar commodities, income and distribution, population, taste and preference, number of buyers, expectations of future prices, other such as religion, the quality of the human factor |
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The Law of Supply |
As the price of the commodity increases, the producer brings many more units to the market for sale |
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The Demand Schedule |
Shows the relationship between quantities demanded at different prices in a table form |
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Supply Schedule |
The relationship between the quantity supplied of a particular community in the price of that commodity |
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Six Dimensions of Human Factor |
1: spiritual capital 2: moral capital 3: aesthetic capital 4: human capital 5: human abilities 6: human potential |
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Theory |
To refer to more general statements about economic relationships |
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Model |
To refer to more particular statements, especially those that take the form of graphs or equations |
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Maslow's Hierarchy of Needs |
Self actualization Esteem needs Love and belongingness needs Safety needs Biological and physiological needs |
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Surplus |
if the quantity supplied at a given price is higher than the quantity demanded at that price |
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Shortage |
exists if the quantity demanded at a given price is greater than the quantity supplied at that price |
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Equilibrium price |
Quantity demanded = quantity supplied |
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Classification of commodities |
No commodity can be classified, it is all by personal preference Normal good, inferior good, and neutral good |
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Difference between movement and shift |
Change in quantity = movement along Change in demand = shifts of the curve |
