CH 1 VIDEOS Flashcards
1
Q
OPPORTUNITY COST FORMULA STATES?
A
EXPLICIT COST \+ IMPLICIT COST OF ALTERNATIVE = OPPORTUNITY COST
2
Q
ECONOMIC SURPLUS FORMULA STATES?
A
BENEFIT \+ OPPORTUNITY COST = ECONOMIC SURPLUS
3
Q
OPPORTUNITY COST DEFINITION
A
EXPLICIT & IMPLICIT VALUE OF FOREGONE
4
Q
ECONOMIC SURPLUS DEFINITION
A
BENEFIT OF ACTION MINUS COST
5
Q
ECONOMIC SURPLUS METHOD 1 STATES
A
NET BENEFIT - OPPORTUNITY COST = ECONOMIC SURPLUS
6
Q
ECONOMIC SURPLUS METHOD 2 STATES
A
VALUE - EXPLICIT COST - OPPORTUNITY COST = ECONOMIC SURPLUS
