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5 Cards in this Set
- Front
- Back
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Opportunity Costs
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real economic costs of a good or service which can be produced and measured by the value of the best sacrificed alternative. money, time, other activities.
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Marginal Analysis
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Marginal means the value of the last unit. Cost vs. Benefit.
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Diminishing Return
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Provided one input is fixed and add more of another input, the productivity of each extra unit will decline
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Voluntary Exchange
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Due to exchange between buyers and sellers both parties are better off.
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Real vs. Nominal
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When making decision you must look at real value. Difference between real value and nominal value is the rate of inflation.
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