Macro Flashcards

1
Q

scarcity

A

a situation where unlimited wants exceed limited resources available to fulfill those wants

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2
Q

macroeconomics

A

study of the economy as a whole

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3
Q

Production Possibilities Frontier

A

a curve showing max attainable combinations of 2 products that be purchased with available resources and tech\needs positive data

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4
Q

normative approach

A

expresses a value judgement regarding a situation as good or bad, desirable or undesirable

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5
Q

positive approach

A

seeks to understand behavior and operation of systems without judgement/uses facts

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6
Q

economic growth

A

ability of the economy to increase the production of goods and services

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7
Q

absolute advantage

A

ability of a firm to produce more a of a good or service with the same amount of resources

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8
Q

comparative advantage

A

ability of a firm or individual to produce more of a good or service at a lower opportunity cost than competitors

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9
Q

free market

A

few govt restrictions on how a good or service can be produced or sold or how a factor of production can be employed

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10
Q

property rights

A

the rights of individuals or firms have the exclusive use of their property

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