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Definition
| What there should be. What economy should look like, and what policy actions should be recommended. |
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1. State the goal
2. Policy options
3. Implement & evaluate |
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| Social science that deals with people & their decisions. Scarce resources & unlimited wants. |
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- Scarcity & choice
- Rational behavior
- Utility (satisfaction)
- Marginal analysis
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People who impacted/shaped economics |
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Definition
- Adam Smith
- David Ricardo
- John Stuart Mill
- Karl Marx
- John Mayhard Keynes
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Definition
| The overall. Deals simply with everything. |
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| Specifics. Studies one, singular aspect. |
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(Superior good)
- Income increases, demand increases
- Income decreases, demand decreases
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Definition
- Income increases, yet demand decreases
- Income decreases, yet demand increases
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Definition
- Economic resources
- Property resources
- Land & capital
- Human resources (labor)
- Entrepreneurial ability
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Term
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Definition
| Factors of production used to create goods or services that are not themselves significantly consumed in the production process. |
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Definition
- Takes the initiative
- Makes the policy decisions
- Innovator
- Risk bearer
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Definition
- Land (raw materials) -- rental income
- Capital (capital equipment -- interest income
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Definition
- Labor (wages)
- Entrepreneur (profit & loss)
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Economics and Efficiency
(maximize unlimited wants) |
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Definition
- Full employment
- Full production
- Production efficiency
- Allocation efficiency
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Term
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Definition
- Different combinations of 2 products that can be produced given the possible suggestions
- Fixed resources
- Fixed technology
- Two products
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Term
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Definition
- Increased resources
- Better resource quality
- Technological advances
- Trades
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| Production possibilities frontier |
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Definition
- More resources
- Better resources
- Technology
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Term
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Definition
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Term
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Definition
- Pure capitalism
- Laissez-faire--keep govt. from interfering with economy
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Term
| Five fundamental questions of market system economy... |
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Definition
- What will be produced?
- How will goods be produced?
- Who will recieve goods/services?
- How will the system accomodate change?
- How will the system promote progress?
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