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Definitions |
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ILLEGAL TRADE
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SMUGGLING
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APC
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Average propensity to consume
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Pardon
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a release from legal punishment
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places, institutions or technological arrangements
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markets
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Scarcity
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Occurs because resources are limied and our wants are unlimited
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marginal revenue equation
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MR= (TR2- TR1)/ (Outp.2-Outp.1)
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Laissez-faire
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philosophy that government should not interfer with commerce
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production
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the act of producing; creation; manufacture.
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entrepreneur
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person who starts the business; man with the plan
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capitalism
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The preferred economic system in a democracy ( preferred in the United States)
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What is a major consequence of increased productivity due to specialization and exchange?
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interdependence
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Suppose that Ken spends 4 hours playing golf, paying green fees of $50, rather than working at his job that pays $10 hour. What is the economic cost of his decision to play golf?
a) $90
b) $60
c) $50
d) $40
e) nothing, since he enjoys golf much mo
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a)$90
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Variable costs
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Costs that change as output changes.
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Auto fatalities fell by this percentage in March 2008:
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22.1 percent
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Allocate
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To distribute scarce resources - such as money, land, equipment, or labor - in order to satisfy the greatest number of needs and wants.
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Positive Questions
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questions that econmoic analysis might be able to answer
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surplus
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something that remains above what is used or needed.
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Public goods
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goods that are non-rival consumption by one person does not reduce the amount available for another and non-excludable once provided, no person can be excluded from benefiting.
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Travelor's checks
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A special kind of check that represents money in a bank or large company. They are sold for face value with an extra fee, but they will be replaced if lost or stolen
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services
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work that is done for other people, such as by waiters, lawyers, and nurses
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Traditional economy
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the allocation of scarce resources and nearly all other economic activity stems from ritual, habit, or custom. Individuals are not free to make decisions based on what they want or would like to have. their roles are defined by the customs of their elders and ancestors.
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Consumer Good
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good intended for final use by consumers rather than businesses
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inferior goods
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a good or service whose consumption declines as income rises, prices held constant
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equilibrium price
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price that "clears the market" by leaving neither a surplus nor a shortage at the end of the trading period
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PARITES WHO ARE NOT DIRECTLY INVOLVED IN A GIVEN ACTIVITY OR TRANSACTION.
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THIRD PARTIES
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Economic Model
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A simplified version of reality used to analyze real life economic situations.
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product market
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the market where goods and services are bought and sold
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Natural Monopoly
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is a condition on the cost-technology of an industry whereby it is most efficient involving the lowest long-run average cost for production to be concentrated in a single form.
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inflate
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to expand unduly in amount, value, or size
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excise tax
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taxes that a government places on the manufactorer or sale of certain products
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Demand of Loanable Funds
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the relationship between the quantity of loanable funds demanded and the real interest rate (when all other influences remain the same)
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Progressive tax
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A tax for which people with lower incomes pay a lower percentage of their income in tax than do people with higher incomes.
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Define Elasticity?
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A measure of how much one economic variable responds to changes in another economic variable.
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joe tries to bargain at an electronic store but is unable to negotiate the price down. what should be his next step
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walk away
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A TAX SYSTEM IN WHICH, AS INCOME INCREASES, A HIGHER PERCENTAGE OF THE ADDITIONAL INCOME IS PAID AS TAXES. THE MARGINAL TAX RATE EXCEEDS THE AVERAGE TAX RATE AS INCOME RISES.
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PROGRESSIVE TAXATION
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People have to make choices because of scarcity.
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Economic Problem
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supply
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the quantity of a commodity that is in the market and available for purchase or that is available for purchase at a particular price
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Enter your front text here.
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Enter your back text here.
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The labor force equals the
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number of employed and unemployed individuals
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An increase in a country's net capital outflow shifts the supply of domestic currency int he market for foreign currency exchange to the *** thereby, *** the real exchange rate
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- right- decreasing
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measure of value
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a common denominator that can be used to express worth in terms that most individuals understand.
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Commercial Banks reserves are
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assets to the commercial bank and liabilities to the federal reserve bank holding them
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Opportunity cost
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what is given up when a decision is made
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TVC = total variable cost
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cost of workers, cost for input materials, depends on how many products a firm manufactures
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In a "Perfectly Competitive Market" all producers are ______________ and all consumers are ______________.
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Price taking producers and Price taking consumers
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Producers Surplus on the graph
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the area between the price and the supply curve
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Before imposing a sales or excise tax, government must be concerned about how much revenue this tax will generate. What types of products are the best revenue-producers for the government?
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Products like cigarettes, alcohol, and gasoline.
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people tend to use them together
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Examples of Causes in Shifts of Supply Curve...
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The need to make choices about the use of resources arises because?
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everything that exists if limited or finite in quantity
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