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Definition
| Human wants exceeded available resources |
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Definition
| the study of the whole economy including the topics of inflation, unemployment, and economic growth |
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Definition
| The study of household and firm behavior and how they interact in the market place. |
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| the self-regulating nature of the marketplace |
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Definition
| Holding all other things constant |
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Definition
| The incorrect view that what is true for the individual is always true for the group. |
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| Inputs used to produce goods and services |
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Definition
| The productive knowledge and skill people receive from education, on-the-job training, health, and other factors that increase productivity. |
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Term
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Definition
| The value of the best forgone alternative that was not chosen |
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Term
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Definition
| One person with fewer things going on produces more because they and focus on one thing and master it |
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Term
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Definition
| Occurs when a person or country can produce a good or service at lower opportunity cost than others |
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Definition
Government runs everything “communism, socialism”
I. Cannot cover everything i.e.… Cuba running out of toilet paper
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Definition
| an economy that relies chiefly on market forces to allocate goods and resources and to determine prices “capitalism” |
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Definition
| an economic system that combines private and state enterprises “free market” |
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Definition
| The relationship between household and firms |
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Definition
labor, entrepreneurship,
Everything is owned by “Households
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Term
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Definition
| Manufacture the stuff we need in homes |
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Term
| Production Possibility Curve- |
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Definition
| Always on a graph Two types of goods “because you only have two axis” Takes place over time Quality and quantity of resources don’t change Technology doesn’t change. |
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