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Economic Choices flashcards
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- What is meant by “Scarcity” in this lesson?Scarcity and opportunity cost
- Available resources cannot satisfy all competing wants simultaneously.
- What is meant by “Opportunity cost” in this lesson?Scarcity and opportunity cost
- Opportunity cost is the value of the next-best forgone alternative.
- What is meant by “Trade-off” in this lesson?Scarcity and opportunity cost
- A trade-off involves sacrificing one valued outcome to obtain another.
- What is meant by “Resource” in this lesson?Scarcity and opportunity cost
- Resources are inputs used to produce goods and services.
- What is meant by “Economic good” in this lesson?Scarcity and opportunity cost
- An economic good uses scarce resources and has an opportunity cost.
- What is meant by “Choice constraint” in this lesson?Scarcity and opportunity cost
- A constraint limits feasible choices given resources and conditions.
- What is meant by “Incentive” in this lesson?Incentives
- An incentive changes the benefits or costs associated with an action.
- What is meant by “Marginal benefit” in this lesson?Incentives
- Marginal benefit is the additional benefit from one more unit or action.
- What is meant by “Marginal cost” in this lesson?Incentives
- Marginal cost is the additional cost from one more unit or action.
- What is meant by “Unintended consequence” in this lesson?Incentives
- An unintended consequence is an effect not sought by a decision's designers.
- What is meant by “Nonmonetary incentive” in this lesson?Incentives
- A nonmonetary incentive involves rewards or costs other than direct payments.
- What is meant by “Behavioral response” in this lesson?Incentives
- A behavioral response is an action change following altered conditions or incentives.
- What is meant by “Economic model” in this lesson?Tradeoffs and economic models
- A model simplifies relationships to explain or predict outcomes under assumptions.
- What is meant by “Ceteris paribus” in this lesson?Tradeoffs and economic models
- Ceteris paribus means holding other relevant factors unchanged for a comparison.
- What is meant by “Positive statement” in this lesson?Tradeoffs and economic models
- A positive statement makes an empirically assessable claim about what occurs.
- What is meant by “Normative statement” in this lesson?Tradeoffs and economic models
- A normative statement expresses a value judgment about what ought to occur.
- What is meant by “Production possibilities frontier” in this lesson?Tradeoffs and economic models
- A frontier shows maximum feasible combinations of outputs with stated resources and technology.
- What is meant by “Model limitation” in this lesson?Tradeoffs and economic models
- A limitation identifies omitted mechanisms or conditions where a model may not apply.