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Definition
| The tradeoff between equality and efficiency |
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| The tools, equipment, buildings, and other constructions that businesses use to produce goods and services. |
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| A description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. |
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| The social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. |
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| The human resource that organizes the other three factors of production: labor, land, and captial. |
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| The productive resources used to produce goods and services. |
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Definition
| All the objects that people value and produce to satisfy human wants. |
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Definition
| The knowledge and skill that people obtain from education, on-the-job training, and work experience. |
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Definition
| A reward that encourages an action or a penalty that discourages one. |
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Definition
| The income that capital earns. |
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Definition
| The work time and work effort that people devote to producing goods and services. |
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Definition
| All the "gifts of nature" that we use to produce goods and services. |
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Term
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Definition
| The study of the performace of the national economy and the global economy. |
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Term
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Definition
| When a choice is changed by a small amount or by a little at a time, the choice is made at the margin. |
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Term
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Definition
| The benefit that a person receives from consuming one more unit of a good or service. It is measured as the maximum amount that a person is willing to pay for one more unit of the good or service. |
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Term
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Definition
| The opportunity cost of producing one more unit of a good or service. It is the best alternative forgone. It is calculated as the increase in total cost divided by the increase in output. |
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Term
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Definition
| The study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments. |
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Term
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Definition
| The highest-valued alternative that we give up to get something. |
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Definition
| The income earned by entrepreneurship. |
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Definition
| The income that land earns. |
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| Our inability to satisfy all our wants. |
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Definition
| The choices that you think are best ones available for you are choices made in your self-interest. |
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Definition
| Choices that are the best ones for society as a whole. |
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Definition
| A constraint that involves giving up one thing to get something else. |
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Definition
| The income that labor earns. |
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