1-30 of 30
someone knows something that someone else doesn't know
Give this one a go later!
asymmetric information
government intervention
,Give this one a go later!
centrally planned economy
cost of everything you have to give up in order to get something else
Give this one a go later!
Opportunity cost
which of the things you gave up had the greatest value
Give this one a go later!
Best foregone alternative
we use our scarce resources as best as they can be used
Give this one a go later!
efficiently
Not much can change, less flexible things are fixed
Give this one a go later!
, Short run
how G&S move through the economy (grey line on the diagram)
- households provide factors of production to resource markets
- resource markets use factors to produce firms
- firms then sell G&S in the product market
- Households purchase the G&S
Breakdown: Households provide FOP (labour), resource markets use them to makr
firms, the firms make goods, the household buys the goods.
Give this one a go later!
flow of goods and services
people who think at the margin think in increments, usually one. How would getting
one more change my satisfaction with what im doing
Give this one a go later!
Margin
decision making at the individual level. households and firms make decisions about
consumption and production
Give this one a go later!
someone knows something that someone else doesn't know
Give this one a go later!
asymmetric information
government intervention
,Give this one a go later!
centrally planned economy
cost of everything you have to give up in order to get something else
Give this one a go later!
Opportunity cost
which of the things you gave up had the greatest value
Give this one a go later!
Best foregone alternative
we use our scarce resources as best as they can be used
Give this one a go later!
efficiently
Not much can change, less flexible things are fixed
Give this one a go later!
, Short run
how G&S move through the economy (grey line on the diagram)
- households provide factors of production to resource markets
- resource markets use factors to produce firms
- firms then sell G&S in the product market
- Households purchase the G&S
Breakdown: Households provide FOP (labour), resource markets use them to makr
firms, the firms make goods, the household buys the goods.
Give this one a go later!
flow of goods and services
people who think at the margin think in increments, usually one. How would getting
one more change my satisfaction with what im doing
Give this one a go later!
Margin
decision making at the individual level. households and firms make decisions about
consumption and production
Give this one a go later!
