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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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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