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Microeconomics Final
ECO 110 Semester 1 Final, covers material from throughout the first semester.
Question | Answer |
---|---|
economics | Economics is the study of how society allocates and manages its scarce resources. |
opportunity cost | Opportunity cost is the trade-off or what must be given up to obtain something. |
marginal changes | Marginal changes are small incremental adjustments. |
Ten Principles of Economics | 1)Trade-offs, 2)Cost=opportunity, 3)Rational at margin, 4)Incentives, 5)Trade=better off, 6)Markets organize economy, 7)Governments can improve market, 8)Standard of living depends on production, 9)Inflation=too much money, 10)Inflation or unemployment |
externality | Externality is the uncompensated impact on the well-being of a bystander. |
market failure | Market failure is a situation in which a market fails to allocate resources efficiently. |