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SCARCITY RENT: The marginal opportunity cost imposed on future generations by extracting one more unit of a resource today. Scarcity rent is one of two costs the extraction of a finite resource imposes on society. The other is marginal extraction cost--the opportunity cost of resources employed in the extraction activity. Scarcity rent is the cost of "using up" a finite resource because benefits of the extracted resource are unavailable to future generations. Efficiency is achieved when the resource price--the benefit society is willing to pay for the resource today--is equal to the sum of marginal extraction cost and scarcity rent.
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Lesson 6: Market Supply | Unit 2: Law of Supply
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Page: 5 of 19
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The law of supply is the basic principle underlying supply. A definition: The law of supply is a direct relationship between supply price and the quantity supplied, ceteris paribus. - Direct relationship means that people sell more of a good if the price is higher and less if the price is lower.
- The law of supply is not as rigid as the law of demand. The price and the quantity supplied are not always directly related. Higher prices could cause an increase or a decrease in the quantity supplied.
Ceteris paribus is also important to the law of supply.- Ceteris paribus means other things remain unchanged.
- Law of supply applies exclusively to the relationship between supply price and quantity supplied.
- All other things that can affect supply must remain constant to avoid distorting this relationship.
- Because supply is affected by many factors other than price, the price/quantity supply relationship can get lost when other things change.
- Other factors that affect supply are called supply determinants.
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UNILATERAL TRANSFERS A subset of the balance of payments current account that records the difference between gifts or transfers received from other nations and transfers sent to other nations. In includes gifts or transfers between individuals, and perhaps more important, it includes transfers between governments. Two other subsets of the current account include the balance on merchandise trade and balance on services. Unilateral transfers are not included in the balance of trade, which is the sum of the balance on merchandise trade and the balance on services.
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PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time watching the shopping channel looking to buy either a genuine down-filled comforter or a 200-foot blue garden hose. Be on the lookout for mail order catalogs with hidden messages.
Your Complete Scope
This isn't me! What am I?
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Mark Twain said "I wonder how much it would take to buy soap buble if there was only one in the world."
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"What gets measured gets done." -- Peter Drucker, educator
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NYBID
New York Interbank Bid Rate
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