Test Study Guide Exam # 1 (edit)

Test Study Guide Exam # 1 (edit) - Economics The study of...

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Economics The study of efficient utilization or management of limited productive resources which purpose is to attain maximum satisfaction from human material wants Scarcity A limited amount of available resources to fulfill the unlimited wants Marginal Analysis Comparing marginal benefits (watching TV) vs. marginal costs (lower quiz grade for studying less) Fallacy of Composition Assuming that one benefit to an individual is true for the group (when it’s really not ) Post Theory of Fallacy Assuming that event A causes event B 3 Fundamentals 1. What goods and services will be produced ? 2. How will the goods and services be produced ? 3. Who will receive the goods and services produced ? *Efficiency vs. Equity Trade Offs Efficiency is (1) full production all available resources operating at capacity (2) full employment all available resources at work effectively utilizing skills Equity Tradeoffs occur when there is a limited number resources of and one good or service is being produced
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Test Study Guide Exam # 1 (edit) - Economics The study of...

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