ECO105 - Module 1

0.0(0)
studied byStudied by 0 people
0.0(0)
full-widthCall with Kai
GameKnowt Play
New
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/8

flashcard set

Earn XP

Description and Tags

Introduction to Microeconomics

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

9 Terms

1
New cards

Problem of scarcity

Arises because of limited time, money, and energy.

2
New cards

Opportunity Cost

The true price of anything. Opportunity cost > money cost.

3
New cards

Incentives

Rewards and penalties for certain actions.

4
New cards

Rewards

Positive incentives.

5
New cards

Penalties

Negative incentives.Consequences or costs for certain actions.

6
New cards

Absolute Advantage

Being able to create a product definitely cheaper than another group.

7
New cards

Comparative Advantage

Being able to create a product at a cheaper opportunity cost than another group. Key to mutually beneficial gains from trade.

8
New cards

Opportunity Cost

Give Up / Get

9
New cards

Production Possibility Frontier

A graph showing the highest potential quantity that can be produced between two goods with the existing inputs put into consideration.