Economics Chapter 12

economic integration – co-ordination and linking of economic policies
Opportunity cost – Something you give up when you make a choice
debt – money owed when you buy something with credit
market economy – an economic system in which individuals Not the government control the production and distribution of goods and services
supply and demand – the willingness of people to buy a product- customers need to 1) want the product 2) be willing to buy it 3) have the right resources to buy it ; as demand increases so does price and the opposite too (are balanced)
Reinvestment and mergers – What two ways businesses expand and grow?
Refer to Table 10-2. Holding prices constant, when Keira's income changed from $18 to $23, what happens to her total utility and to the marginal utilities of the last cup of soup and the last sandwich purchased?
Ecologically sustainable development – development that meets the needs of the present without compromising the ability of future generations to meet their needs
Incentive – things that motivate or incite people to change a behavior.
human resources – the skills and talents used to create goods or provide services
Why does an increase in the pool of suppliers cause economy of scale? – – there is a reduced average cost of transport (suppliers are closer)
– more competition – suppliers will sell at lower prices
– more variety
Resources – The useful things that people use in providing goods and services.
excludable – if the supplier of that good can prevent people who do not pay from consuming it.
Refer tо Tаble 10-2. Hоlding prices cоnstаnt, when Keirа's income changed from $18 to $23, what happens to her total utility and to the marginal utilities of the last cup of soup and the last sandwich purchased?
investment – the act of using money to earn more money
Human Capital – education, training and experience that a worker, or group of workers, possesses.
inflation – an increase in the average price of all goods and services

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