Term
| Is a freebie or giveaway really free? |
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Definition
| No, scarce resources are used to provide free stuff |
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Term
| What is a major theme in economics? |
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Definition
| Unlimited wants and limited resources |
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Term
| What does marginal benefit mean? |
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Definition
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Term
| What is the ratio of price? |
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Definition
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Term
| What are the factors of production? |
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Definition
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Term
| What is the sum of all marginal utility? |
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Definition
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Term
| How do you calculate the market demand for labor? |
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Definition
| the sim of each firm's MRP (Demand for Labor) curve. |
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Term
| Why is rent based on demand? |
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Definition
| It is a fixed supply and there are different functions for land |
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Term
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Definition
| the price paid for the use of money |
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Term
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Definition
| the cost of a good or service measured in terms of the forgone opportunity to pursue the best possible alternative activity with the same time or resources |
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Term
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Definition
| a way of thinking that see individuals and organizations making realistic decisions made by comparing costs and benefits that are marginal and associated with the individuals' and organizations' actions. |
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Term
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Definition
| the increase in cost required to raise the output of some good or service by one unit |
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Term
| What is efficiency in production? |
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Definition
| a situation in which it is not possible, given available knowledge and productive resources, to produce more of one good without forgoing the opportunity to produce some of another good |
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Term
| What is economic efficiency? |
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Definition
| a state of affairs in which it is impossible to make any change that satisfies one person's wants more fully without causing some other person's wants to be satisfied less fully |
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Term
| What is comparative advantage? |
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Definition
| the ability to produce a good or service at a relatively lower opportunity cost than someone else |
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Term
| What is efficiency in distribution? |
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Definition
| a situation in which it is not possible, by redistributing existing supplies of goods, to satisfy one person's wants more fully without causing some other person's wants to be satisfied less fully |
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Term
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Definition
| any arrangement people have for trading with one another |
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Term
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Definition
| the pleasure, satisfaction, or need fulfillment that people obtain from the consumption of goods or services |
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Term
| What is marginal utility? |
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Definition
| the amount of added utility gained from a one-unit increase in consumption of a good, other things being equal |
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Term
| Principle of diminishing marginal utility |
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Definition
| the principle that the greater the consumption of some good, the smaller the increase in utility from a one-unit increase in consumption of that good |
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Term
| Consumer Equilibrium Formula |
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Definition
| (Marginal Utility of Good A) / (Price of Good A) = (Marginal Utility of Good B) / (Price of Good B) |
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