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78 Cards in this Set
- Front
- Back
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vocab
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consumer person whose needs and wants are satisfied by using goods and services
economics social science that focuses on decision making good object that can satisfy people's needs or wants need a good or service required for survival producer person who makes goods or provides services service action that can satisfy people's needs or wants want a good or service that people would prefer to have, but do not need |
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Economics looks at how groups of people make money-related decisions. Economists, or people who work in the economics field, try to answer questions such as:
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Why are people buying fewer goods and services than they did before?
What causes people to buy more eggs than cereal? Why are so many business owners closing their stores? Are store owners raising the prices of their goods? How do farmers decide which crops to grow? |
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Consumers
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Consumers are one group of decision makers. When you spend money, you are a consumer. You are part of a group of people who buy goods and services. A good is an object that satisfies a person's needs or wants. Cars and homes are goods. People can also spend their money on services, which are actions that satisfy a person's needs or wants. Services include a haircut and a concert performance. The United States is a consumer-oriented society because many Americans spend large portions of their paychecks to buy goods and services.
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Economics is ______.
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a social science that focuses on decision-making
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An example of a need is _____.
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a drink of water
(food and going to the doctor) |
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Select the items below that are examples of goods.
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a two-bedroom house
a sports car a pair of shoes |
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Which of the following best describes a consumer?
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a person who buys goods and services
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Select the items below that describe specific kinds of producers.
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grocery store owner
computer shopper trial lawyer |
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vocab
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analysis in-depth study
benefit what is gained when a decision is made condition circumstance cost what is given up when a decision is made maximize to receive the most from rational behavior receiving the most satisfaction, under certain conditions rational thinking to consider something in a logical way satisfaction happiness |
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A cost is ________.
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something that is given up when a decision is made
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Which action illustrates rational behavior?
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making a decision after logically thinking about the choices
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A benefit is _______.
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what is gained when a decision is made
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Maximizing satisfaction means ________.
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receiving the most benefits, with relatively few costs
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Select the items below that are part of a cost-benefit analysis.
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what you gain and give up from each choice
a way to find the choice that gives you the most gains from a decision a rational approach to decision making |
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vocab
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capital good goods that are made and used to make other goods and services
human capital quality of labor resources human resource quantity and quality of human effort used for production of goods and services natural resource factors derived from nature that are used to achieve a goal productive resource factors used to achieve a goal |
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Productive resources are _____.
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factors that are used to make goods and services
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Select the items below that describe natural resources.
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come from nature
include minerals, air, and sunlight renewable or nonrenewable |
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A machine that is used to print newspapers is a _____.
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renewable resource
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Select the items below that describe nonrenewable resources.
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limited
can be fossil fuels, metals, and minerals |
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Both the quantity and quality of a workforce that makes cars describes the company's _____.
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natural resources
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vocab
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efficient being effective without wasting something (such as time or money)
purchase something bought self-interest doing something to your advantage, sometimes at the expense of others |
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vocab
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efficient using resources in a way that gets the most out of them (i.e. not wasting them)
explicit clearly expressed or observed fair free from bias non-market distribution allocation method not based on price |
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Vocab
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conserve to save
distribute to divide among quantity amount scarce limited |
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Scarce resources are _____.
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limited
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Select the items below that describe why scarcity exists.
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Resources are limited.
People try to conserve. |
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A person shuts off the lights before leaving a room. This is an example of _____.
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conservation
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Dividing up scarce resources refers to resource _____.
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distribution
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vocab
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advertising use of media to persuade consumers to buy a product or service
celebrity endorsement use of famous people to promote a product desire want peer pressure when friends influence people to behave in a certain way physiological needs things essential for a person's body prefer to like one thing better than another preferences the people, objects, or actions that are chosen over other options |
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You have a choice between buying a cell phone or a camera. You choose the cell phone. The cell phone represents your _____.
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preference
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Select all the factors that might determine your preference for a new shirt.
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color of the shirt
how the shirt looks on you cost of the shirt |
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Preferences _____.
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are based on the individual
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Select all the items that describe advertising.
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can be in print or on the Internet
might use celebrity endorsements |
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You don't want to buy one of the new music downloads, but your friends convince you to buy it anyway. This is an example of _____.
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peer pressure
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vocab
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accounting cost cost of producing a good or service
alternative option monetary relating to money opportunity cost value of the best alternative given up retail price money value of a good or service that is charged to the customer trade-off value of all the alternatives given up utility happiness; satisfaction |
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A music download costs $1.00 for one song. $1.00 is an example of _____ .
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a retail price
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Select the items that can reduce the amount you pay for a good or service.
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mail-in rebate
coupon comparative shopping |
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An opportunity cost is the _____ .
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value of the best alternative given up
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Select a situation that describes the utility derived from purchasing a cell phone.
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happiness from using your new cell phone
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Shari is trying to decide how she should use her cash birthday gifts. Her choices are new clothes, a concert ticket, or donating the money to her favorite charity. Shari decides to donate the money. The value given up by not choosing both the clothes and the concert ticket is called a _____ .
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trade-off
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Vocab
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incentive something that encourages people to act
investor people who put their money into something (such as stocks), because they hope to make more money penalty negative incentive that makes people worse off reward positive incentive that makes people better off risk the chance of something turning out differently than expected saver people who put aside some of their money for future use |
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A positive incentive that makes you better off is a _____.
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reward
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You just received your driver's license. You went for your first drive, and you had an amazing time! This incentive will most likely result in you _____.
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going driving again
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Pam and Roger go skiing on Sunday morning, and they enjoy their time. On Monday, they go skiing again. This time they fall a lot, and Roger has to sit out the rest of the day. After Monday, Pam and Roger would most likely want to _____.
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stop skiing and find something else to do
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Select all the items that describe incentives.
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can be positive or negative
can be monetary or non-monetary can change affect people's choices and behavior |
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You have some materials (otherwise known as your resources) at home including poster board, construction paper, markers, and colored pencils. You want to earn some extra money, and you have two choices: go into the card making business or the banner business. You choose banner making. After four days of trying to find customers, you end up with zero orders. This incentive will most likely cause you to _____.
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use your resources to make cards instead
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Vocab
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consequence effect
employee worker entrepreneur someone who organizes productive resources to make goods and services expectations things that are anticipated will happen public good item that is provided to society salary payment for work trade-off value of all alternatives given up |
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A person who organizes productive resources to make goods and services is a(n) _____ .
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entrepreneur
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A company bought a piece of land. It can use this resource to build a factory on or to plant crops on. The company can also hold onto the land and try to resell it later for more money. The company decides to build a factory on the land. Any value given up from not choosing the other options is the _____ .
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trade-off
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Governments cannot produce enough goods and services to satisfy everyone's wants because _____ .
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resources are scarce
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vocab
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marginal extra or additional (in economics)
marginal benefit change in total benefit resulting from an action marginal cost change in total cost resulting from an action marginal utility change in total utility resulting from an action utility happiness; satisfaction |
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The change in the total benefit that comes from an action is the _____ .
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marginal benefit
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The law of diminishing utility states that as you consume more of a good, the satisfaction that you feel _____ .
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decreases
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The expense of making an additional shirt is known as the _____ .
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marginal cost
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Effective decision-making means comparing the additional costs of alternatives with the _____ .
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total costs
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If the marginal benefit of an activity is greater than its marginal cost, people are better off doing _____ .
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less of the activity
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Vocab
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externality unintended (or "spillover") effects that result from an action
marginal analysis using marginal measurements to allocate scarce resources for benefit maximization marginal revenue change in total revenue resulting from adding one more unit of a good or service net benefit total benefit minus total cost regulations rules that control the behavior of others revenue money earned from selling a good or service |
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Select all the choices that decision makers could use marginal analysis for to make effective decisions.
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producing another car
adding a machine to the factory |
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After determining the marginal cost and the marginal benefit of an option, the next step is to _____ .
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decide which is greater: marginal cost or marginal benefit
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A company charges $5 for its product. This monetary amount represents the of making an extra unit of the product.
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marginal benefit
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Business employees calculated that the expense to produce an additional cell phone is $50. This monetary amount represents a _____ .
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marginal cost
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Select all items that describe kinds of externalities.
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secondhand smoke
air pollution from trucks unclean water from fertilize |
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Vocab
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command economy economy where goods, services, and resources are distributed by the government
free market economy economy where goods, services, and resources are distributed by price price monetary cost of an item standard of living level of comfort that people feel when goods and services are available to them wage amount that a person earns for working expressed in a unit of time, like $9 an hour |
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Phil wanted the computer that Amy had, so he just took it. This is an example of distribution by _____ .
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force
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Jacob wanted a parking space in a nearby lot. He filled out an application and a computer generated his choices. This is an example of distribution by _____ .
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lottery
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Ellen had a bag full of pencils. She gave out one pencil to everyone in the class. This is an example of distribution by _____ .
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sharing
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Vocab
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allocate distribute
benefit what is gained when a decision is made consumer person whose needs and wants are satisfied by using goods and services cost what is given up when a decision is made economics social science that focuses on decision-making entrepreneur someone who organizes productive resources to make goods and services good objects that can satisfy people's needs or wants producer person who makes goods or provides services scarce limited service actions that can satisfy people's needs or wants want a good or service that people would prefer to have, but do not need |
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Natural resources,
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such as air, water, and sand, come from nature. They can be:
renewable – able to be replenished, e.g., a tree because we can plant new ones; or nonrenewable – once they are used, they are gone. This group includes fossil fuels, metals, and minerals. |
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Human Resources
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consist of both the quantity and quality of human effort that goes into making good and services
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Capital Goods
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items produced to make other goods and services, such as a machine that makes car engines
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marginal analysis, which followed these steps:
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1.Figure out the marginal cost and marginal benefit of your choice.
2. Determine which is greater: the marginal cost or the marginal benefit. 3. If the marginal cost is greater, then do not add the additional unit. If the marginal benefit is greater, then add the additional unit. |
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non-market distribution methods for goods and services. They included:
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First-Come, First-Served The first to arrive receive the good or service.
Force The stronger people take from the weaker. Majority Rule Goods and services are distributed based on what most people want. Contest Goods and services are given out to contest winners. Lottery Recepients of goods and services are randomly selected. Sharing Equally Goods and services are divided among everyone equally. Personal Characteristics Goods and services are distibuted on the basis of personal traits, such as eye color or height |
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Free market economies consist of:
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♥ allocation of resources and distribution of goods and services through price
♥ a lot of freedom for both consumers and producers ♥competition between businesses ♥large selection of goods and services ♥efficient market system ♥ economic growth ♥wages are not always fair |
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Command economies consist of:
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♥ allocation of resources and distribution of goods and services by the government (the central authority)
♥limited freedom for both consumers and producers ♥ little (to none)competition between businesses ♥ small selection of goods and services ♥inefficient distribution system ♥low economic growth ♥governments strive for equal pay |
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Select all the items that can be used to make goods and services.
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renewable resources
capital goods |
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Receiving a penalty from an action will most likely result in doing _____ .
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less of the action
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You are better off consuming or producing an additional good or service if _____ .
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the marginal benefit is greater than the marginal cost
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Majority rule, first-come/first-served, and sharing equally are examples of _____ .
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non-market distribution methods
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Free-market economies allocate resources and distribute goods and services mostly based on _____ .
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price
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