Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
Economics
|
Study of how we make decisions in a world where recources are limited
|
|
|
Incentive
|
Know
|
|
|
Scarcity
|
-The fundamental problem of economics
-Occurs when we don't have enough recources to produce all the things we would like to have. |
|
|
Economic model
|
Simplified representation of the real world that is used to explain how the economy works or to predict what would happen if something in the economy changed.
|
|
|
Trade-off
|
The alternative u face if u decide to do one thing over another.
|
|
|
opportunity cost
|
The cost of the next best use of ur time or money when u choose to do one thing other than another.
|
|
|
fixed costs
|
Costs that are the same no matter how many units of goods are produced.
|
|
|
variable cost
|
expenses that change with the # of product produced.
|
|
|
total costs
|
If we add fixed costs to variable costs we have total costs
|
|
|
Marginal Costs
|
The extra additional cost of producing one additional unit of output
|
|
|
Marginal revenue
|
the change in total revenue -the extra revenue-that results from selling one more unit of out put
|
|
|
Marginal Benefit
|
the additional , or extra benefit associated with an action.
|
|
|
Cost-Benefit Analysis
|
-an economic model
-compares marginal cost and marginal benefits of a decision |
|
|
Market economy
|
economic system in which supply,demand, and price help people make decisions and allocate resources
|
|
|
Market economy is sometimes described as being based on BLANK
|
Capitalism
|
|
|
Capitalism
|
System in which private citizens own most, if not all , of the means of production.
|
|
|
Market economy is sometimes said to be based of BLANK AND BLANK
|
Capitalism and free enterprise
|
|
|
Free enterprise
|
economic system in which inividuals and businesses are allowed to compete for profit with a min of gov interferance.
|
|
|
incentives
|
rewards that are offered to try and persuade people to take certain economic actions.
|
|
|
Rational choice
|
choosing the alternative that has the greatest value from among comparable-quality products.
|
