________ occurs when we have fewer resources than we have uses for those resources . '
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Economic tools
________ help us to understand and analyse choices and their implications.
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Decision makers
________ weigh the costs and benefits associated with any choice in order to maximize the value of some objective.
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Macroeconomics deals
________ with the choices we make as a society, such as how much tax to pay and how many progran1s the government should sponsor.
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Utility
________ is a synonym tor satisfaction or happiness and describes the benefit individuals get from their choices.
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Ceteris paribus
________ is a Latin term that means "all other things remaining constant "or "all else equal ..
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data points
By convention, the term "curve "is used to describe the connected ________, regardless of whether the curve is a straight line or not.
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Profit
________ is the difference between the earnings that a firm receives from selling its good or service and the costs incurred to produce the good or service.
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Analysis
________ of economic choices often involves relaxing the ceteris paribus assumption in a series of steps.
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Microeconomics deals
________ with the choices individuals, households, or businesses make, the decision for both spouses in a family to have paid employment, and the decisions firms make when hiring workers.
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Graphs
________ are visual representations of relationships between two or more variables.
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Sunk costs
________ are irrelevant when making decisions at the margin.
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Scarcity
________ forces us to allocate our scarce resources among the many uses for them, and we have to make choices or trade- offs between these various uses.
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Profit
________ is the benefit that firms get from their choices.
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The law of diminishing marginal benefits
as more and more of an activity is done, the marginal benefits derived from the activity lend to diminish
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The law of marginal cost
as more and more of an activity is done, the marginal costs of the activity tend to increase
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