Term
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Definition
| The social Science that studies how individuals, institutions, and society make optimal choices under conditions of scarcity. |
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Term
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Definition
Scarcity and Choice
Free for all?
Purposeful Behavior
Marginals Analysis |
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Definition
| Looks ar specific economic units, concerned with the individual industry, firm or household and price of specific products and resources |
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Definition
| Examines the economy as a whole, measures of total output, total employmenet, total income, aggregate expenditures, and general price level |
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Definition
| Describes the ecnomy as it actually is, avoiding judgements and attempting to establish scientific statements about economic behavior |
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Definition
| Involves value judgements about what the ecnomy should be like and the desitability of the policy options available |
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Definition
Land/Natural Resources
Labor/Human Resources
Capital/Investment Goods
Entrepreneurial Ability |
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| Command/Socialism/Communism |
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Definition
Public ownership of resources
Economic activity is by central planning |
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Definition
| Private ownership, markets and prices direct ecnomic activity, self-interest, government has limited role |
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Term
| Characteristics of Market System |
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Definition
Private individuals own most of the land
Freedom of enterprise and choice
Self-interest
Competition among buyers and sellers is controlling
Markets and Prices
Reliance on technology and capital goods
Specialization
Use of money as medium of exchange
Active, but limited government |
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Definition
Consumer sovereignty
dollar votes |
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Term
| How will they be produced? |
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Definition
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Definition
| willing and able to pay for it |
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| How will they accomodate change? |
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Definition
| markets are dynamic, increase in demand can increase prices and increase profits |
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| how will they promote progress? |
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Definition
| Technological imporvements, and capital accumluation, creative destruction |
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Term
| What happens in the Resource Markets? |
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Definition
Households sell resources
Businesses buy resources |
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Term
| What happens in the Product Markets? |
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Definition
Households are on the buying side
Businesses are on the selling side |
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Term
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Definition
| Shows various amounts of a product that consumers are willing and able to buy at each specific price in a series of possible prices during a specified time period |
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Definition
Price increases the quanitity falls
inverse relationship |
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Term
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Definition
Taste
Number of Buyers
Income
Price of related goods
Consumer Expectations |
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Definition
| Shows amounts of a product a producer is willing and able to produce and sell at each specific price in a series of possible prices during a specified time period |
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Definition
Produce more at a high price than low price
Direct relationship |
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Term
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Definition
Resource Prices
Technology
Taxes and Subsidies
Prices of Related Goods
Producer expectations
Number of Sellers |
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Term
| Prices above equilibrium.... |
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Definition
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Term
| prices below equilibrium...... |
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Definition
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Term
| Increase in supply will have effect of ________ equilibrium price and __________ quantity |
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Definition
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Term
| Increase in demand will have _______ equilibrium price and quantity |
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Definition
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Term
| Decrease in demand will have __________ equilibrium price and quantity |
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Definition
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Term
| Decrease in supply will have ________ equilibrium price and _______ quantity |
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Definition
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Term
| Supply Increases and Demand Decreases then Equilibrium Quantity _________ and price _________ |
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Definition
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Term
| Supply Decreases and Demand Increases, Equilibrium Quantity _________ and Price _________ |
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Definition
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Term
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Definition
| maximum price a seller can charge |
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Term
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Definition
| The minimum price a seller can charge |
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Term
| Price Elasticity of Demand |
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Definition
| Tells us that consumers will respond to a price decrease by buyinh more of a product |
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