Econ 103 Exam 1 Questions and Answers 100% accurate
Opportunity Cost - ANSWER-The value of what we give up when we make a choice (Explicit Cost + Implicit Costs) (money + another cost of something like time) marginal benefit - ANSWER-the extra benefit of adding one unit marginal cost - ANSWER-Extra cost of producing one additional unit of production. actors in economic terms - ANSWER-Consumers, workers, businesses, bureaucrats, etc. They are assumed to to maximize something Rational Behavior - ANSWER-Rational actors in the economy respond to incentives for things Goods - ANSWER-Anything that creates utility (car, dog, significant other, song you hear on the radio) Economic good - ANSWER-A good that is scarce. Something that we're willing to pay for Bad - ANSWER-Creates dis-utility. Things that make you unhappy (change the channel on the radio because a song you hate is playing) Economic Bad - ANSWER-We will pay to get rid of it. Creates so much dis-utility that you're willing to pay to get rid of it (hired hit people to get rid of a spouse) What are the 4 factors of production? - ANSWER-land (gifts on nature, air, land, oil), labor(people like a teacher), capital(human made instruments of production (we make to make other things, hammer, trucks, trains, machines), entrepreneurship (risk-takers (people who take risks of bringing today, Henry Ford, Steve Wynn)
Document information
- Uploaded on
- January 5, 2024
- Number of pages
- 7
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
