Principles of Microeconomics

These flashcards encompass key economic concepts introduced in the Principles of Microeconomics lecture.

Economics

The study of how societies manage scarce resources and make choices about their allocation.

Resource Scarcity

The fundamental economic problem of having seemingly infinite human wants in a world of limited resources.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Scarcity Management

The process of making choices about how to allocate limited resources to meet unlimited wants.

Absolute Scarcity

A situation where resources are completely lacking and do not exist at all.

Relative Scarcity

A condition where resources are insufficient to meet the demands but are available in some quantity.

Increasing Opportunity Cost

An economic situation where producing more of one good results in higher losses of another good.

Constant Opportunity Cost

An economic situation where the trade-off between two goods remains constant regardless of the quantities produced.

Decreasing Opportunity Cost

An economic situation where producing more of one good results in lower losses of another good.

Scale of Preference

A list of wants arranged in order of priority to aid decision-making on resource allocation.