Week 1- Problem set Flashcards Preview

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Flashcards in Week 1- Problem set Deck (10):
1

Productivity-

Quantity of goods produced by labor input.

2

Market failure-

Situation where market do not allocate resources efficiently.

3

Efficiency-

How much society can produce the most from scarce resources.

4

Trade-

Between 2 countries. It increases both competition and specialization.

5

Opportunity cost-

when you give up something to obtain an item.

6

Price-

reflects both value of a good to society and the cost to society of making the good.

7

Market power-

The ability to influence matket prices.

8

In market economy-

firms and households make decision to guide economic activity.

9

Marginal change

A small, incremental adjustment.

10

Equality-

How evenly the benefit of using resources are distributed among members of society.