Econ

econ quiz

Economie is the study of

choices

5 key economic assumptions

1. Scarcity (unlimited wants limited recourses

2. Due to scarcity we are forced to make choices, leading us to make trade off, what we give up

3. Goal is to maximize utility/satisfaction

4. Make decisions based on marginal cost vs marginal bennefits

5. All of this can be explained and anylizes in models and graphs

Marginal analyze

is a decision-making process that evaluates the additional benefits and costs associated with a particular choice.

Economist us scientific method to develope _____ which than are used to achieve goal or solve something and this is called

Thereo economics, policy economics

Trade off

All the things you give up when you chose somthing ells

Opurtunity cost

Most disirable alternative given up by choice

Utility Marginal Allocate

Satisfaction aditional distribute

Scarcity VS Shortage

Scarcity always Shortage temporary

Price vs Cost

The amount buyer spends VS Amount seller spends to make good

Investment

Money business spends to improve prduction

Acountents

Looks at explicit cost (out of pocket)

Economist

Explicit and implicit cost ( implicit cost are opurtunity cost)

4 factors of production: land

Natural resources

4 factors of production: Labor

Efort of workers that are being payed

4 factors of production: Capital

Man made goods that help production like machines

4 factors of production: Entrepreneur

Visioner that combines previous factors and takes risk to generate profit