Term
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Definition
| the benifit forgone as a result of making a choice or decision |
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Term
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Definition
| The additional cost arising from making a choice or decition |
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Term
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Definition
| The additional benifit arising from making a choice or decision |
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Term
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Definition
| the study of behavior of economic agregrets |
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Term
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Definition
| the study of individual buyers and sellers |
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Term
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Definition
| a graph that shows the combinations of two goods that an indavidual may consume |
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Term
| the Production possibility frontier |
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Definition
| A graph that shows combinations of two products an economy can produce |
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Term
| the law of oppertunity cost |
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Definition
| The lae depicted by a negitive slope of the production possibility curve |
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Term
| law of increasing opportunity cost |
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Definition
| the law depicted by a negitive slope of the production possibility frontier |
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Term
| fixed resources, fixed technology, two goods, productive effeciency. |
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Definition
| The 4 asumptions in production possiblity |
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Term
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Definition
| situation represented by a point inside production possibility curve |
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Term
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Definition
| Situation represented by a shift to the right of the production possibilities curve |
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Term
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Definition
| objective of a business firm in a competitive market |
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Term
| least cost resource combination |
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Definition
| Objective of a business firm in a competitive market |
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Term
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Definition
| the total market value of final goods and services made in the US |
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Term
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Definition
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Term
| consumption of fixed capital |
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Definition
| another name for depreciation |
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Term
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Definition
| income earned by all resouce owners in the economy |
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Term
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Definition
| The price index that measures the prices of final goods purchased by all selectors |
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Term
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Definition
| the price index that measures the cost of a market based on consumer goods |
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Term
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Definition
| The GDP at current prices |
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Term
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Definition
| the gdp adjusted for the price index |
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Term
| Gross Domestic investment |
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Definition
| Expendadures of newly produced capital goods |
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Term
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Definition
| The phase of a business cycle that follows the peak of a cycle |
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Term
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Definition
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Term
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Definition
| due to normal quits and layoffs in a market |
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Term
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Definition
| due to changes in supply and demand |
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Term
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Definition
| due to recesion and demands |
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Term
| natural (or full enployment) unemployment |
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Definition
| structural or frictional unemplyment as a % of the labor force/ unemployment that persists even when the labor force is full |
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Term
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Definition
| Increase in General Price Value |
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Term
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Definition
| workers who drop out of labor force |
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Term
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Definition
| suffers greatest unemplyment rate |
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Term
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Definition
| diffrence between nominal intrest rate and inflation primium |
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Term
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Definition
| Disposible income not consumed |
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Term
| The average propensity to conso\ume |
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Definition
| Friction of disposable income of a house hold |
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Term
| the marginal propensity to consume |
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Definition
| in disposable income a household plan to consume |
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Term
| marginal propensity to save |
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Definition
| The fration of change in disposable income that a household plans to save |
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Term
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Definition
| Sum of the marginal propensities to consume and save |
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