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  1. what is depreciation?
    the diminishing of the value of goods
  2. What are durable goods?
    goods that are expected to last at least 3 years
  3. What are nondurable goods?
    goods that have a life expectancy of less than 3 years
  4. define value in use
    value that is directly related to the benefits their owners recieve through their use
  5. defne Value in Exchange
    what a particular good is worth in exchange for another good
  6. What is the priciple of diminishing marginal utility?
    as one 's supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease
  7. What is demand?
    The relationship between a good's price and the amount that people are willing to buy
  8. State the law of demand.
    "other things remaining equal, as the price of a good increases, the quantity demanded decreases in a free market economy"
  9. What is a demand curve?
    a graphic representation of the amount of goods purchased at different prices.
  10. What is a demand schedule?
    a list of numbers that compares price with quantity demanded
  11. what is a normal good?
    a good whose demand in directly related to the consumer's income.
  12. supply schedule
    a list of numbers that compares price with quantity supplied
  13. what is supply?
    the relationship between a good's price and the amount that producers are willing to supply
  14. what is state capitalism?
    a system in which the owner of much of the nation's capitol is a powerful centralized
  15. what is subsistence economy?
    an economic system that provides barely enough to keep a society alive
  16. what is a capitalist?
    anyone who owns producer goods or owns a share of some business that produces goods

Card Set Information

2010-05-14 23:27:04

Chapters 4 and 5
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