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Details Title: Chapter 1 Description: Scope and Method of Economics Total Flash Cards: 11 Created: 01/09/2006 16:47:47	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Economics Definition Study of how individuals/societies choose to use scarce or limited resources Term Opportunity cost Definition value of best alternative we give up when we make a choice Term why are there opportunity costs? Definition because resources are limited Term the four criteria to evaluate policy Definition #1 - Growth #2 - Equity #3 - Efficiency #4 - Stability Term efficiency - allocative efficiency Definition producing what peope want at the lowest possible cost Term equity Definition fairness Term growth Definition increase in total output Term stability Definition refers to economic fluctuations -low inflation -low unemployment Term in substitutions what does consumption equal? Definition income