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examines how individuals, institutions, and society make choices under conditions of scarcity
rational decision making
the process of weighing up the opportunity cost and benefits of an activity
all manufactored aids used in producing consumer goods/services satisfy our wants indirectly because they aid in the production of consumer goods
free market economy
individuals answer all economic questions. all production is in private handsd and supply/demand set wages and prices in the economy.
facts/ cause-and-effect relationships "what is" deals w/ areas that are capable of being proven to be correct or not. Deals w/ what the economy is actually like
judgements/opinions "what ought to be" looks at the desirability of certain aspects of the economy. deals w/ areas that are open to personal opinion and belief
graphical representation of 2 goods that can be produced if an economy, firm, etc. uses its resources fully and efficiently
the increase in real national income per capita (movement inside ppc closer towards the curve)
development that meets the needs of the present without compromising the ability of future generations to meet their own needs
The situation in which unlimited wants exceed the limited resources available to fulfill those wants.
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