Term
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Definition
| the produced means of production, something you make to use to make something else |
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Term
| The 3 factors of production |
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Definition
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Term
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Definition
| an area over which buyers to sellers negotiate the exchange of a well defined commodity |
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Definition
| market for goods & services for final user (consumer-ex: gas, fillings @ dentist) |
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Term
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Definition
| exchanging services used in production |
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Term
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Definition
| market economy in which firms & households have primary influence over what is bought & sold |
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Term
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Definition
| foregone value of the next best alternative that is not chosen |
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Term
| 3 questions economics attempts to answer |
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Definition
1) What is to be produced?
2) How should these goods be produced? (Goods & services-commodities)
3) How much should be produced? How much should be distributed to each member of the economy? |
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Term
| choice set/opportunity set |
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Definition
| set of options that is defined and limited by a budget constraint |
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Term
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Definition
| the set of opportunities to purchase real goods and services available to a household as determined by prices and money income |
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Term
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Definition
| the satisfaction a product yields |
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Term
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Definition
| (MU) the additional satisfaction gained by the consumption or use of one more unit of a good or service |
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Term
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Definition
| the total amount of satisfaction obtained from consumption of a good or service |
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Term
| law of diminishing marginal utility |
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Definition
| the more of any one good consumed in a given period, the less satisfaction generated by consuming each additional unit of the same good |
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Term
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Definition
| waiting in line as a means of distributing goods and services: a nonprice mechanism |
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Term
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Definition
| those who receive special treatment from dealers during situations of excess demand |
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Term
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Definition
| tickets or coupons that entitle individuals to purchase a certain amount of a given product per month |
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