1st Week Flashcards
1
Q
Scarcity
A
a resource is scarce if there is not enough for the various ways the society wants to use it
2
Q
Resource
A
anything that can be used to produce something
3
Q
Opportunity cost
A
is the value of the next-best alternative when a decision is made, it’s what is given up.
4
Q
Marginal value
A
is the value associated with one additional unit
5
Q
Marginal cost (MC)
A
The cost associated with one more unit
6
Q
Marginal private benefit (MPB)
A
The benefit associated with one more unit.
7
Q
Positive statement vs. normative
A
A positive statement is objective a normative is with an opinion
8
Q
HHI index
A
is a measure to measure the market concentration
Formula: MC1^2 MC2^2 MC3^2 ……
9
Q
A
