MICROECONOMICS- Week 1: scarcity, opportunity cost, and marginal analysis ⭐️ ⭐️ ⭐️

question

Scarcity:

answer

how economists study the fundamental issue of scarcity(not an unlimited supply of resources)

question

opportunity cost :

answer

cost of not selecting the "next best" alternative

question

Positive statements:

answer

attempts to describe the world as is

question

Normative statements:

answer

attempts to prescribe how the world should be

question

Marginal benefit:

answer

additional benefit resulting from a one-unit increase in the level of consumption (or an activity)

question

Marginal cost:

answer

additional cost associated with one-unit increase in the level of consumption (or an activity)

question

Self Interest —

answer

the idea that people choose to do the things that interests them

question

Optimization

answer

the idea that people make choices in order to maximize the overall benefit , or utility of an action subject to its cost. Marginal benefit > marginal cost

question

MC =

answer

TC (change) / Q (change)

question

MB =

answer

TB (change) / Q (change)

question

Price driving quantity

answer

demand curve

question

Quantity driving price

answer

marginal benefit

question

Resources

answer

anything that is used to produce a good or service, whether nature or manufactured

question

Land

answer

natural resources used in production

question

Labor

answer

physical and mental activity devoted to making goods and services

question

Capital

answer

tools machinery infrastructure and knowledge used to produce goods and services (human and physical (BLANK))

question

Comparative advantage

answer

The ability to produce a good or serve at LOWER relative opportunity cost than another producer

question

Terms of trade

answer

the price of one good , service or resource in terms of another

1 of 18

question

Scarcity:

answer

how economists study the fundamental issue of scarcity(not an unlimited supply of resources)

question

opportunity cost :

answer

cost of not selecting the "next best" alternative

question

Positive statements:

answer

attempts to describe the world as is

question

Normative statements:

answer

attempts to prescribe how the world should be

question

Marginal benefit:

answer

additional benefit resulting from a one-unit increase in the level of consumption (or an activity)

question

Marginal cost:

answer

additional cost associated with one-unit increase in the level of consumption (or an activity)

question

Self Interest —

answer

the idea that people choose to do the things that interests them

question

Optimization

answer

the idea that people make choices in order to maximize the overall benefit , or utility of an action subject to its cost. Marginal benefit > marginal cost

question

MC =

answer

TC (change) / Q (change)

question

MB =

answer

TB (change) / Q (change)

question

Price driving quantity

answer

demand curve

question

Quantity driving price

answer

marginal benefit

question

Resources

answer

anything that is used to produce a good or service, whether nature or manufactured

question

Land

answer

natural resources used in production

question

Labor

answer

physical and mental activity devoted to making goods and services

question

Capital

answer

tools machinery infrastructure and knowledge used to produce goods and services (human and physical (BLANK))

question

Comparative advantage

answer

The ability to produce a good or serve at LOWER relative opportunity cost than another producer

question

Terms of trade

answer

the price of one good , service or resource in terms of another

Order an Essay Now & Get These Features For Free:

Place an Order