Mid Term Review Flashcards

1
Q

Economics definition

A

Economics is the study of how human beings coordinate their unlimited wants in a world of limited resources

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2
Q

Economic decision rule

A

If marginal benefit exceeds marginal cost do it

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3
Q

Sunk costs

A

Cost already payed that you cannot get back should not be factored into decision making

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4
Q

PPC

A

Is ended outward because of in reading opportunity costs

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5
Q

Efficient points of production

A

Use all resources and don’t waste anything

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6
Q

Inefficient point of production

A

Wasting resources

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7
Q

Trade

A

Even with trade we can never produce about the PPC production possibility curve

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8
Q

Capitalism

A

Individuals own properties of production

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9
Q

Two main roles of government

A

Actor and referee

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10
Q

Relationship between price and quantity demanded

A

Inverse

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11
Q

Shift in demand curve ?

A

Decrease or increase in demand

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