ECON2105 Chap. 1

incentive

A(n) is a reward than encourages an action or a penalty that discourages an action.

Sunk cost

cost in the past, cant be reversed

Your choices

If you take an econ class, you wont be able to take other classes at the same time

Others choices

If another student takes the last spot, youll have to pick a different class

Future choices

Your decision to study Econ today changes the classes you meet the prerequisites for

behavioral/social

Economics is called a science.

time

What is the ultimate scarce resource that affects everyone?

disincentive

"I won't smoke cigarettes because they will make me sick."

This is opposite of an incentive, also called a ___.

land, labor, capital, entrepreneurship

What are the four factors of production?

services

tasks that accomplish something for people, and which people are probably willing to pay money for