Module 1 Flashcards
An economic good
A good which someone is willing to pay for
Bill of Rights
The first 10 amendments
Economics
The study of mankind in the ordinary business of life
Economic problem
Unlimited wants, limited resources
Must make choices
Scarcity
Opportunity cost
Whatever we give up to make the choice
Opportunity cost = explicit cost + implicit cost
Marginal cost/benefits
The cost/benefit of one more or one less of something
Economic bad
Willing to pay to get rid of
Aquinas on Natural Law
God instilled it into men’s minds so as to be known by then naturally
John Locke
Every man has a property in his own self
3 traits of capitalism
Private ownership of capital
Market allocation
Self-interest motives
Contestable Markets
As long as competition is possible, the market will work as if there is competition
Planned obsolescence
Designing things to have short lifespans
Scientific method
1) observation
2) hypothesis
3) test
4) conclusion
Inferior good
Demand for good decreases as incomes increase. Ex. Fast food
