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  1. Micro economics is a study of principles affecting the decision-making of micro component parts of the toal economy known as ______ and _____.
    • consumers
    • business cards
  2. Most economic decisions are made under the condition of ______.
  3. economists always include all expenses plys opportunity ______ to ensure rational decision making. Such non-cash expenses are estimated on ______ best use.
    • cost
    • 2nd
  4. The marginal unit is the last ______ unit produced. Mariginal cost of the last unit may be more or less than the ______ cost. marginal rate of change is the _____ of the total cost curve.
    • additional
    • average
    • slope
  5. Economics is a social science like psychology and it is ______? Economic theory helps to reduce the level of uncertainty.
  6. Micro economics utilizes _____ thinking? Normas are economic goals like full employment etc.
  7. Resources like (capital, land, labor) are ______ for all nations around the world. Therefore it is necessary to understand there is no free lunch. Everything produced has a ______ and an opportunity cost in use of resources.
    • scarcity
    • ???
  8. The law of diminishing returns means the total output is increasing at a decreasing rate because of increased scarcity of the ______ resource. Labor is an examle of a variable resource and plant capacity is a fixed resrouce.
  9. The most important characteristic of an effective economic theory is it capacity to ______ the future outcomes.
  10. Diminishing productivity is caused by increased sarcity of the _____ resources as produciton is expanded with additional variable resources.
  11. Economic theories are based upon a set of assumptions and these theories predict the effectiveness of any new ______
  12. As assumption of ceteris paribus means?
    all other extenious variables remain constant during research
  13. Micro theory is "postive thinking and macro is ______ thinking.
  14. Currently the GDP in the USA for 2011 was _____ dollars
    15 trillion
  15. There is no free lunch which means?
  16. Decisions are made under the condition of unvertainty and such economic decisions should be decided on the ______ unit bases.
  17. Which is more important to the future of a decision making process a sunk or marginal cost?
    marginal cost
  18. Eonomists always include non-cash expenses called opportunity costs which are estimatd in value by the second best use of a resource or a fair market _____ for the resource
  19. The inclusion of opportunity costs will ______ the breakeven point.
  20. The production possibility curve for the USA in 2011 is more or less than 14.5 trillion. Why?
  21. The production possibililty constraint line is not linear but curvilinear because the resourecs are assumed to substitute for each other but not perfect ______.
  22. The concase slope of the production possibility curve creates the law of increasing _____ ______ as the economy reallocates resources.
    opportunity costs
  23. The produciton possibility frontier is expanded by adding new resources or by better and improved production ______
  24. The theory that supports free trade zones like the EU and NAFTA is the law of _________ by David Ricardo
    Comparative cost advantage
  25. Free trade like automation displaces workers but the final results of trade and automation is more _____ jobs in 2011 than ever before in the nation's history.
  26. A sales tax is ______ as a percentage of personal income.
  27. USA taxes are becoming more ______ because the US is debtor nation.
  28. Adam Smith's capitalism was a rebellion against the old mercentilis's economic system of the British Empire whih had a signiant role for government in the economy and not the _______ ______ role envisioned by Smith in Capitalism.
    laissez faire
Card Set
early material
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