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21 Cards in this Set
- Front
- Back
economics
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the common sense science of how and why people, businesses, and governments make the choices they do
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Insatiability
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refers to the face that everyone has unlimited wants
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Scarcity
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everything is limited in quantity
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Economic Cost
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the value people place on a good or service that helps to determine the price of the good or service
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Good
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any tangible thing that has a measurable life span
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Services
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intangible items
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Economic Goods and services
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goods and services that bear a positive economic cost (price tag higher than zero)
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Nuisance Goods
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goods that a consumer pays to have removed and bear a negative economic cost
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Recycling
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a process of turning various nuisance goods into economic goods
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Free Goods and Services
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goods and services with a price tag of zero
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Diamond-Water Paradox- D
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iamonds were obviously more valuable than water, but this was incorrect when one considered that a wealthy person dying of thirst would give every diamond he had for one glass of water.
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Intrinsic Value-
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a principle that holds that a thing is valuable because of the nature of the product
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Subjective Value
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states that it is an object’s usefulness to the buyer that determines its worth
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Utility
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usefulness
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Opportunity Benefit
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the satisfaction a person receives from the choice they make
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Opportunity Cost
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the regret you experience for not choosing differently
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Util
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an economic term for an imaginary unit of satisfaction
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Microeconomics
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deals with choices made by individual units: individual people, households, or businesses
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Macroeconomics
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examines large-scale economic choices and issues
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Positive Economics
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the approach of observing economic choices and predicting economic events
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Normative Economics
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making value judgments about existing or proposed economic policies
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