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When Noah's dad gets home from work, Noah runs to him shouting, "Daddy!" His dad sweeps him up in a bear hug, gives him a gentle knuckle rub on top of his head, and then lowers him to the ground in a pretend choke hold. Noah screams with delight, escapes the hold, and climbs on his dad's back to ride him like a horse. Noah accidentally hurt his dad while climbing, and his dad said sternly, "That really hurt. Be nice!" What kind of lesson is Noah's dad teaching him with this rough-and-tumble play bout?
Loanable Funds
Money available for borrowing. The market for loanable funds is where borrowers and lenders come together, influencing interest rates.
David Ricardo
A British political economist known for his theory on comparative advantage, implying that countries should specialize in and trade goods in which they have a relative efficiency.
Theory Of Rent
A principle explaining how the price and allocation of land and its resources are determined based on their use, productivity, and locational advantages.
Efficiently Allocating
The process of distributing resources in a manner that maximizes the net benefits received from their use.
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