tacileni's version from 2015-05-15 00:07


Question Answer
economicsstudy of how we make decisions in a world where resources are limited
wants would like to have
needs have to have for survival
supplyvarious quantities for goods or service that producers are willing to sell
demanddesire, ability to buy
equilibrium pricewhere they achieve balance, no shortage or surplus
cost-benefit analysiscomparing cost (time and money) and benefits and choosing an action where benefits are greater than costs.
fixed cost costs always stay the same
variable costsexpenses that change
total costs all costs together
marginal costs extra cost or expenses of producing one more unit
marginal benefitthe additional or extra benefit associated with an action
opportunity costthe cost when you choose to do one thing other than another
surplus extra
shortage less than needed or wanted
law of demand quantity demanded and price move in opposite directions
law of supply quantity supplied varies according to price
trade off exchange of one thing for another
scarcity not enough resources to produce what you need

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