1.1-1.2 Flashcards
A decision-making process in which you compare what you will sacrifice and gain by a specific action
Cost/benefit analysis
The extra benefit of adding one unit
Marginal benefit
The extra cost of adding one unit
Marginal cost
The process of deciding whether to do or use one additional unit of some resource
Thinking at the Margin
The act of giving up one benefit in order to gain another, greater benefit
Trade off
The physical objects that someone produces
Goods
The study of how people seek to satisfy their needs and wants by making choices
Economics
A situation in which consumers want more of a good or service than producers are willing to make available at a particular price
Shortage
The effort people devote to tasks for which they are paid
Labor
All natural resources used to produce goods and services
Land
Any human-made resource that is used to produce other goods and services
Capital
The actions or activities that one person performs for another
Services
The knowledge and skills a worker gains through education and experience
Human capital
Examples of shortages
When more people want to buy the same good and they run short on that good
decision that you can make at the margin??
Folding a note repeatedly in your pocket, the more you fold the bulkier it gets, what’s the best number of folds for the paper to fit the best
