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| economic system characterized by the public ownership of resources and centralized planning |
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| increase in production costs leads to: |
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| an upward (leftward) shift in supply |
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| benefits/harm done to a third party during a transation |
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| amount of economic activity that can be supported indefinitely by the environment |
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| the value of what has to be given up in order to get something else |
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| resources are not used up at a faster rate than they are replenished |
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| Perfectly elastic demand curve |
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| demand changes a great deal in response to a price change |
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| tend to think market-based economy works best without any interference from government |
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| central authority decides how resources and goods are distributed |
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| The Ultimatum and Dictator games |
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| demonstrate that fairness is a consideration in market type transactions because a rational, purely self interested player 1 would never offer more than 0, and yet the average offer is about 4 |
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| Objectification/commodification |
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| refers to conern that monetizing some transactions might change the way something is viewed |
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| would likely alleviate the shortage of kidneys |
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| optimal level of pollution |
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| where marginal social benefit equals the marginal social cost |
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| associated with reliance on market-based solutions to externalities |
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| median net worth of White American households |
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| summary stat that measures income inequality |
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| is more UNequally distributed than it is in most other developed nations |
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| The wealthiest 1 percent in US... |
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| own about 40 percent of all publicly traded stock |
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| labor markets are coercive and exploitive |
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| effects of retiring workers |
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| shifts supply of labor to the left, leading to an increase in the equilibrium wage |
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| lowest price allowed by law |
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| shortage of labor occurs when... |
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| the amount of labor supplied is less than the amount demanded |
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| increase in minimum wage... |
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| leads to increased unemployment |
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| warns of the dangers of globalization |
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| richard wilkinson describes "how economic inequality harms societies" |
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| economies of scale, patents, control of an input |
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| ability to be a price maker (set price above marginal cost) |
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| charging different prices to different consumers based on their differences in their demand |
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| practice of choosing "just good enough" |
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| takes into account opportunity costs |
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| a few big producers satisfy most of market demand |
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| characterized by a large number of producers |
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| change in costs as quantity changes |
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| should be ignored when deciding what price to charge |
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| less elastic demand curve = |
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| higher price monopolist charges |
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| price elasticity of demand close to -1 |
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| indicates consumers have a high willingness to pay but have low ability to pay |
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| represent a competitive advantage in perfectly competitive markets |
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| Marginal revenue = market price |
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| golden rule of profit maximization |
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| a firm should produce the quantity at which marginal revenue equals marginal cost |
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