ECON 100 CH.1-5,19: – Questions & Detailed Answers
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Terms in this set (61)
Ceteris Paribus all things equal
trade a mutually beneficial transaction
What conditions need to exist for trade 1. Preferences need to be different
to occur? 2. People trade more frequently when they have "extra
stuff".
You decide to forgo partying for 2 hours opportunity cost
to study for an economics test. You learn
that the enjoyment you would have had
partying is an example of
While in class, you realize there are efficiency
more people than there are seats in the
class. Across the hall, there is a large,
empty lecture hall and wonder why the
university is not operating at
, Your professor is attempting to recruit incentive
more students to major in economics,
arguing they get a higher income. This is
an example of an
If you are in a group project, and you specialization
divide up the group knowing each
person can do a certain part better than
everyone else to get the project done
faster, this is considered
What factors into the opportunity cost 1. Time spent due to the decision
for a decision? 2. Actual financial cost of the decision
3. Benefits from the best foregone alternative.
marginal cost the cost of producing one more unit of a good or
service
constant marginal cost the situation where an additional unit of a good or
service costs the same as each of the former units
marginal benefit the benefit experienced from undertaking one more unit
of an activity
increasing marginal cost a situation where the expense of producing one more
unit of a good or service is greater than that of
producing the previous unit.
optimal quantity the amount that, when produced or consumed, results in
the greatest possible net gain
decreasing marginal benefit the situation that occurs when the gain from an
additional unit of a good or service is less than that
gained from producing the previous unit.
what are institutions? the laws, social norms and conventions of a culture
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Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (61)
Ceteris Paribus all things equal
trade a mutually beneficial transaction
What conditions need to exist for trade 1. Preferences need to be different
to occur? 2. People trade more frequently when they have "extra
stuff".
You decide to forgo partying for 2 hours opportunity cost
to study for an economics test. You learn
that the enjoyment you would have had
partying is an example of
While in class, you realize there are efficiency
more people than there are seats in the
class. Across the hall, there is a large,
empty lecture hall and wonder why the
university is not operating at
, Your professor is attempting to recruit incentive
more students to major in economics,
arguing they get a higher income. This is
an example of an
If you are in a group project, and you specialization
divide up the group knowing each
person can do a certain part better than
everyone else to get the project done
faster, this is considered
What factors into the opportunity cost 1. Time spent due to the decision
for a decision? 2. Actual financial cost of the decision
3. Benefits from the best foregone alternative.
marginal cost the cost of producing one more unit of a good or
service
constant marginal cost the situation where an additional unit of a good or
service costs the same as each of the former units
marginal benefit the benefit experienced from undertaking one more unit
of an activity
increasing marginal cost a situation where the expense of producing one more
unit of a good or service is greater than that of
producing the previous unit.
optimal quantity the amount that, when produced or consumed, results in
the greatest possible net gain
decreasing marginal benefit the situation that occurs when the gain from an
additional unit of a good or service is less than that
gained from producing the previous unit.
what are institutions? the laws, social norms and conventions of a culture