Economics

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Economics

Back 1

How people, organizations, and society as a whole allocate scarce resources.

Front 2

Opportunity Cost

Back 2

What one gives up to undertake an action. The sum of the explicit and implicit costs of an action.

Front 3

Economic Institutions

Back 3

Patterns of behavior we come to depend on when interacting with others in society.

Front 4

Pareto Optimal

Back 4

An allocation where no individual can be made better off without reducing the welfare of another individual. Pareto Optimal is the same as economic effiency.

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Comparitive Advantage

Back 5

An economic entity's ability to produce a good at a lower opportunity cost than some other entity.

Front 6

Law of Increasing Costs

Back 6

The more of something produced the greater the opportunity cost of producing 1 more unit.

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Specialization

Back 7

An economic entity producing only one good or service.

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Utility

Back 8

A measure of satisfaction that the consumption of a good or service will bring.

Front 9

Marginal Cost

Back 9

The incrimental increase in opportunity costs resulting from an additional unit of consumption of a particular good.

Front 10

Marginal Benefit

Back 10

The incrimental increase to ones benefit resulting from an additional unit of consumption of a particular economic good.

Front 11

Diminishing Marginal Benefit

Back 11

The more of an economic good you recieve the less marginal benefit you recieve from that good. (candy example)