Introduction Flashcards
1
Q
Opportunity Cost
A
The cost of any action in terms of what you could have done instead
2
Q
Constrained Optimization
A
Making the best with what you have, or choosing to maximize something (like utility, or profit) given some constraint (like a budget, or costs and prices)
3
Q
Models
A
a model is a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified, often mathematical, framework designed to illustrate complex processes.
4
Q
Demand
A
The demand for a particular good at different prices.
The greater the demand, the higher the price.
5
Q
Supply
A
Quantity of a particular good produced at different prices.
The greater the supply, the lower the price.
