economics correct answers the study of how people make choices under conditions of scarcity and of the results of those choices for society
rational person correct answers someone with well-defined goals who tries to fulfill those goals as best as he or she can
economic surplus correct answer...
Economics 101 || All Answers Are Correct 100%.
economics correct answers the study of how people make choices under conditions of scarcity and of the results of those choices for society
rational person correct answers someone with well-defined goals who tries to fulfill those goals as best as he or she can
economic surplus correct answers the benefit of taking any action minus its cost
opportunity cost correct answers the value of the next-best alternative that must be foregone in order to undertake the activity
positive economics correct answers economic analysis that offers cause-and-effect explanations of economic relationships; the propositions, or hypotheses, that emrege from positive economics can, in principle, be confirmed or refuted by data; in principle, data can also be used to measure the magnitude of effects predicted by positive economics
normative economics correct answers economic statements that reflect subjective value judgments and are based on ethical positions
The Scarcity Problem correct answers Having to make a choice- more of one good thing means having less of another
The Cost-Benefit Principle correct answers An individual will be better off taking an action if, and only if, the extra benefits from taking the action are greater than the extra costs
time value of money correct answers the fact that a given dollar amount today is equivalnet to a larger dollar amount in the future, because the money can be invested in an interest-bearing account in the meantime
sunk cost correct answers a cost that is beyond recovery at the moment a decision must be made
marginal cost correct answers the increase in total cost that results from carrying out one additional unit of an activity
marginal benefit correct answers the increase in total benefit that results from carrying out one more unit of an activity
average cost correct answers total cost of undertaking n units of an activity divided by n
average benefit correct answers total benefit of undertaking n units of an activity divided by n
fixed cost correct answers a cost that does not very with the level of an activity
variable cost correct answers a cost that varies with the level of activity microeconomics correct answers the study of individual choice under scarcity and its implications for the behaviour of prices and quantities in individual markets
macroeconomics correct answers the study of the performance of national economies and the policies that governments use to try to improve that performance
absolute advantage correct answers one person has an absolute advantage over another if he or she takes fewer hours to perfom a task than the other person
comparative advantage correct answers one person has a comparative advantage over another if his or her opportunity cost of performing a task is lower than the other person's opportunity cost
The Principle of Comparative Advantage correct answers total output is largest when each person concentrates on the activities for which his or her opportunity cost is lowest
production possibilities curve correct answers a graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good
excess supply correct answers the difference between the quantity supplied and the quantity demanded when the price of a good exceeds the equilibrium price
excess demand correct answers he difference between the quantity supplied and the quantity demanded when the price of a good lies below the equilibrium price
efficient quantity correct answers quantity that results in the maximum possible economic surplus from producing and consuming the good
economic efficiency correct answers condition that occurs when all goods and services are produced and consumed at their respective socially optimal levels
The Efficiency Principle correct answers economic efficiency occurs when total economic surplus is maximized
The Equilibrium Principle correct answers a market in equilibrium leaves no unexploited opportunities for individuals but may not exploit all gains achievable through collective action
normal good correct answers a good whose demand curve shifts rightward when the incomes of buyers increase
inferior good correct answers a good whose demand curve shifts leftward when the incomes of buyers increase
utility correct answers the sense of well-being, satisfaction, or pleasure a person derives from consuming a good or service
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R195,69. You're not tied to anything after your purchase.
