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10 Cards in this Set
- Front
- Back
what is economics?
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the study of peoples incentives and choices, and what happesn to coordinate their decisions and acitons
economics is a social science--study of human behavior |
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what are resources?
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inputs to production
ex: labor, capital, land |
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what is capital?
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human made inputs to production
ex: tools, equiptment, machinery |
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what is scarcity?
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our inability to satisfy all of our wants
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what are the 2 big economic questions?
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1. what how and for whom to produce?
what=consumption, how=production, for whom=distribution 2. when is the pursuit of self interest in the social interest? adam smith |
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what is macroeconomics?
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the study of the relationships among aggregate economic agents and the nation and global markets
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what is an economic way of thinking?
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analytical: a way of dividing the whole into elemental parts and looking at the interrelation of the parts to the whole
ex: car engine |
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what is choice at the margin? what is marginial benefit/cost?
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identifying the additional benefit cost from an increase in an activity
m.ben: what we gain, m.cost, what we lose |
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does marginial benefit increase or decrease?
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decrease (first chocolate bar is better than the second)
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what is opportunity cost?
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the value of the next best forgone alternative (the next best thing you give up when you make a choice)
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