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17 Cards in this Set
- Front
- Back
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economic efficiency
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a situation where no one in society can be made better off without making someone else worse off
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technical efficiency
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producing at a point on the PPC
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market imperfection
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a lack of efficiency that results from imperfect imformation in the marketplace
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externalities
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the costs of benefits of a transaction that are borne be someone not directly involved in the transaction
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public goods
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a good whose consumption by one person does not diminish the quantity or quality available for others
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private property right
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the limitation of ownership to an individual
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free ride
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the enjoyment of benefits of a good by a producer or consumer without having to pay for the good
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monopoly
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a situation where there is only one producer of a good
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business cycle
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fluctuations in the economy between growth and stagnation
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rent seeking
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thee use of resources simply to transfer wealth from one group to another without increasing production or total wealth
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public choice
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the study of how government actions result from the self-interested behaviors of voters
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government role
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the role of government may stem from the inefficiencies that exist in a market system
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monetary policy
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policy directed toward control of money and credit
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federal reserve
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the central bank of the united states
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fiscal policy
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policy directed toward government spending and taxation
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centrally planned economy
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an economic system in which the government determines what goods and services are produced and the prices at which they are sold
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market economy
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relies on prices and individual actions to solve economic problems
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