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17 Cards in this Set
- Front
- Back
Opportunity Cost-
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to obtain more of 1 thing, society forgoes the opportunity of getting the next best thing
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Utility-
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the pleasure, happiness, or satisfaction obtained from consuming a good or service
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Marginal Analysis-
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comparisons of marginal benefits and marginal costs, usually for decision making
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Economic Principles are expressed as the:
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tendencies of typical or average consumers, workers, or business firms
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Other-Things-Equal Assumption-
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the assumption that factors other than those being considered do not change
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Microeconomics-
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at this level of analysis, the economist observes the details of an economic unit, or very small segment of the economy, under a figurative microscope
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Macroeconomics-
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examines either the economy as a whole or its basic subdivisions or aggregates, such as the gov. household and business sectors
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Aggregate-
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a collection of specific economic units treated as if they were one unit
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Positive Economics-
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focus on facts and cause-and-effect relationships
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Normative Economics-
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incorporates value judgements about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal
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Economizing Problem-
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the need to make choices bc economic wants exceed economic means
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Budget Line-
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a schedule or curve that shows various combinations of 2 products a consumer can purchase with a specific money income
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Economic Resources-
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all natural, human, and manufactured resources that go into the production of goods and services
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4 Resource Categories:
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-land
-labor -capital -entrepreneurship |
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Land-
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includes all natural resources used in the production process, such as arable land, forests, mineral and oil deposits, and water resources
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Labor-
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consists of physical and mental talents of individuals used in producing goods and services
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Capital-
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includes all manufactured aids used in producing consumer goods and services
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