Intro Flashcards
1
Q
What is Economics ?
A
Studies how people utilize resources and manage scarcity
2
Q
Scarcity
A
Unlimited wants, but limited resources
3
Q
Economic Agents
A
Any group or individual that makes choices(consumers,firms,politicians…)
4
Q
Opportunity Cost
A
What you stand to gain/lose by making a particular choice
5
Q
Cost
A
What you lose
6
Q
Benefit
A
What you gain
7
Q
Marginal Benefit
A
The benefit that you gain for consuming/adding one additional unit
8
Q
Marginal Cost
A
What you lose by consuming or adding an additional unit
9
Q
Marginal Analysis
A
Analyzing marginal cost and marginal benefits to determine net benefit
10
Q
Net Benefit
A
Subtracting total cost from total benefits
11
Q
Optimization
A
Choosing the best option
