Basic Economics Flashcards
1
Q
Opportunity cost
A
The cost of the next best alternative foregone when you choose to satisfy one want over another
2
Q
Four questions
A
What to produce
How to produce
How much to produce
Whom to produce for
3
Q
Economics
A
The study of decisions and their impact
4
Q
Economic problem
A
How to allocate scarce resources in order to satisfy unlimited wants
5
Q
Cost benefit analysis
A
For a decision to be rational economic behaviour, the benefits must outweigh the cost
6
Q
Total cost
A
Private + external
7
Q
Total benefit
A
Private + external
