Opportunity Cost
Help!
|
|
||||
|---|---|---|---|---|---|
| Opportunity Cost (definition) | -the value of what you must give up when a choice or decision is made
-modeled on a production possibilities graph (PPC)
🗑
|
||||
| Opportunity Cost a.k.a... | the value of the next best alternative use of time, money, or resources
🗑
|
||||
| Trade off | when you give something up in order to get something else
🗑
|
||||
| Production Possibilities Curve | -illustrates the trade-offs facing an economy that hypothetically only produces 2 goods with their resources
-it shows the max quantity of 1 good that can be produced for each possible quantity of the other good produced
🗑
|
||||
| Efficient | -when an economy uses or employs all its resources
-efficient is being on your PPC curve
🗑
|
||||
| Efficient (IMP--MC on TEST) | -you can't make more of one product without producing less of the other product
🗑
|
||||
| Economic Growth | -this means an increase in the production of goods and services
🗑
|
||||
| Economies measure their growth using... | GDP
🗑
|
||||
| Economic growth is caused by... | 1) better technology
2) more resources
3) investing in HUMAN CAPTIAL
🗑
|
||||
| marginal benefit | additional benefit resulting from a small increase in some activity
🗑
|
||||
| marginal cost | additional cost resulting from a small increase in some activity
🗑
|
||||
| marginal principle | increase the level of an activity as long as its marginal benefit exceeds its marginal cost
*choose the level at which the marginal benefit=marginal cost*
🗑
|
||||
| principle of voluntary exchange | a voluntary exchange between 2 people makes both people better off
🗑
|
||||
| nominal value | the face value of an amount of money
🗑
|
||||
| real value | the value of an amount of money in terms of what it can buy
🗑
|
||||
| principle of diminishing returns | suppose output is produced with 2+ inputs (resources), and we increase 1 input while holding the other input or inputs fixed. Beyond some point---called the point of diminishing returns---outputs will INCREASE at a DECREASING rate
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
bbell123
Popular Economics sets