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10 Cards in this Set
- Front
- Back
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Scarcity Principle states?
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there is limited goods and services and we can't produce everything we need to.
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What does econ principle 2 (Cost of something is what you give up to get it) actually mean?
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Trade off
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The ____________ of any item is whatever must be given up to obtain it.
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Opportunity cost
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Example of eco principle #4: People respond to incentives
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Cash for cars
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What type of advantage does an entity have over another if he takes fewer hours to perform a task than another person?
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Absolute Advantage
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What type of advantage does an entity have over another if his opportunity cost of performing a task is lower than another persons?
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Comparative advantage
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What is the difference between a natural advantage and an acquired advantage?
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Natural advantages are advantages you don't have to work for
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example of natural advantage
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Oil
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example of acquired advantage
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purchasing boardwalk in Monopoly
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Inflation occurs when
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excessive growth in teh quantity of money causes the value of money to fall
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