1: Preliminary Concepts Flashcards

1
Q

What is an efficient market?

A

one which profit opportunities are eliminated almost instantly

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2
Q

What are sunk costs?

A

expenditures that you have already committed to; decisions now will not change them

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3
Q

What is opportunity cost

A

the best alternative that is given up when a decision is made

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4
Q

ECONOMICS

A

is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.

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