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UA / Economics / EC 110 / What are the three basic trade offs faced by a society?

What are the three basic trade offs faced by a society?

What are the three basic trade offs faced by a society?

Description

School: University of Alabama - Tuscaloosa
Department: Economics
Course: Principles of Microeconomics
Professor: Kent zirlott
Term: Fall 2016
Tags:
Cost: 50
Name: Microeconomics Test One
Description: Study Guide
Uploaded: 02/06/2017
4 Pages 134 Views 1 Unlocks
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Microeconomics Test One Study Guide  


What are the three basic trade offs faced by a society?



CHAPTER ONE  

Definitions to know

∙ Efficiency

∙ Equality

∙ Opportunity cost

∙ Rational People

∙ Marginal Change

∙ Incentive  

∙ Market Economy  

∙ Property Rights

∙ Market Failure  

∙ Externality  

∙ Market power  

∙ Productivity  

∙ Inflation  

∙ Business Cycle  

∙ People face trade-offs, people perform action based on the later costs,  rational thinkers compare marginal cost to marginal benefit  


How do countries benefit from comparative advantage?



CHAPTER TWO  

Definitions to know

∙ Circular-flow Diagram  

∙ Production Possibilities  

∙ Microeconomics  

∙ Macroeconomics  

∙ Positive statements  

∙ Normative statements  

∙ Try and think like scientists, make appropriate assumptions and build  models (charts and graphs) to create examples  

CHAPTER THREE

Definitions to know  

Absolute Advantage  


How do marginal costs and benefits relate to trade offs?



If you want to learn more check out What is the rule for scalar multiplication of vectors?

Opportunity Cost

Comparative Advantage Don't forget about the age old question of What is legitimate political authority based on?

Imports  

Exports  

∙ People consume goods, principle of comparative advantage  compares to people and countries

Microeconomics Test One Study Guide  

CHAPTER ONE  

Definitions to know

∙ Efficiency

∙ Equality

∙ Opportunity cost

∙ Rational People

∙ Marginal Change

∙ Incentive  

∙ Market Economy  

∙ Property Rights

∙ Market Failure  We also discuss several other topics like How does axial stress vary from neutral axis?

∙ Externality  

∙ Market power  

∙ Productivity  

∙ Inflation  

∙ Business Cycle  

∙ People face trade-offs, people perform action based on the later costs,  rational thinkers compare marginal cost to marginal benefit  If you want to learn more check out What is the meaning of ionic in intermolecular interactions?

CHAPTER TWO  

Definitions to know

∙ Circular-flow Diagram  

∙ Production Possibilities  

∙ Microeconomics  

∙ Macroeconomics  

∙ Positive statements  

∙ Normative statements  

∙ Try and think like scientists, make appropriate assumptions and build  models (charts and graphs) to create examples  

CHAPTER THREE

Definitions to know  

Absolute Advantage  If you want to learn more check out What does ae stand for in economics?

Opportunity Cost

Comparative Advantage

Imports  

Exports  If you want to learn more check out How can you describe the international criminal justice law?

∙ People consume goods, principle of comparative advantage  compares to people and countries

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