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16 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Scarcity
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the limited nature of society's resources.
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society/scarce. S
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Economics
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the study of how society manages its scarce resources.
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study + scarcity = econ.
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Efficiency
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the property of society getting the most it can from its scarce resources.
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Efficient = economical use
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Equity
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the property of distributing economic prosperity fairly among the members of society
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Equity = Equality
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Opportunity Cost
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whatever must be given up to obtain some item
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Cost- Think, paying for something in order to recieve it.
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Rational People
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people who systematically and purposefully do the best they can to achieve their objectives.
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Think *rare, unlazy* =]
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Marginal Changes
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small incremental adjustments to a plan of action
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Changes = adjustments.
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Incentive
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something that induces a person to act
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study these cards and you'll get an A!
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Market Economy
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an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
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Firms and households are working together. Market consists of buyers and sellers. Sellers (firms)- decide what to make and who to hire.
Buyers (households)- decide who to work for and what to buy based on personal interest. |
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Property Rights
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the ability of an individual to own and exercise control over scarce resources
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Market Failure
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a situation in which a market left on its own fails to allocate resources efficiently
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Externality
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the impact of one person's actions on the well-being of a bystander
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Also, a possible cause for market failure.
"external"-outside. affecting those outside of yourself. |
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Market Power
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the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
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One word. *Walmart*
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Productivity
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the quantity of goods and services produced from each hour of a worker's time
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Inflation
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an increase in the overall level of princes in the economy
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"I"nflation; "I"ncrease
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Business Cycle
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fluctuations in economic activity, such as employment and production
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