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15 Cards in this Set
- Front
- Back
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Economics
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is the study of how human beings coordinate their wants and desires, given the decision making mechanisms, social customs, and political realities of the society.
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Scarcity
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the goods available are too few to satisfy individuals' desires
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Marginal Cost
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the additional cost to you over and above the costs you have already incurred
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Sunk Costs
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costs that have already been incurred and cannot be recovered
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Marginal Benefit
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the additional benefit above what you've already derived
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Opportunity Cost
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the benefit forgone by undertaking that activity
the value of the next best alternative |
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Economic Forces
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the necessart reactions to scarcity
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Invisible Hand
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the price mechanism, the rise and fall of prices that guides our actions in a market
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Economic Model
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a framework that places the generalized insights of the theory in a more specific contextual setting
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Economic Principle
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a commonly held economic insight stated as a law or general assumption
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Efficiency
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achieving a goal as cheaply as possible
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Invisible Hand Theory
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a market economy, through the price mechansim, will tend to allocate resources efficiently
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Microeconomics
Macroeconomics |
- the study of individual choice, and how that choice is influenced by economic forces
- the study of the economy |
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Positive Economics
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the study of what is, and how the economy works
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Negative Economics
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the study of what the goald of the economy should be
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