ECON 120 CH1.3 - Opportunity Cost Principle
Studied by 0 people
Learn
Practice Test
Spaced Repetition
Match
Flashcards1/5
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
6 Terms
What is the opportunity cost?
The true cost of something is the next best alternative you have to give to get it
What does opportunity cost highlight?
Highlights the problem of scarcity. recourses are limited therefore any recourse you spend pursing one activity leaves fewer resources to pursue others.
What two questions do you ask yourself when you calculate opportunity costs
What happens if you pursue your choice
what happens under you next best alternative
What are sunk costs?
A cost that has been incurred and cannot be reversed. It exists in whatever choice you make
What is the production possibility frontier
Shows the differnt sets of output that are attainable with your scarce resources
If you have 3 hours per night to devote to studying either economics where each hour will boost your grade by 8 points or psychology where each hour will boost your grade by 4 points. What would the ppf look like? What happens to the frontier if you had greater productivity?
