1.1 Scarcity
What is the act of getting something, by giving up the possibility of getting something else?
Trade off
What are the 4 types of economic systems?
Traditional, Command, Market, Mixed Economy
If a point is on the PPC line. It is what?
Efficient
A ____________ is someone who is rational and uses logic to make decisions that are often very predictable?
Rational Agent
If marginal benefit is greater than marginal cost. Do we increase or decrease production?
Increase
What is the State of being in short supply?
Scarcity
What economies are also known as Planned economies are often an outgrowth of a socialist or communist government?
Command Economies
If a point is inside the PPC line. It is what?
Underutilized
When a country can produce more of a good or service than another producer that has the same quantity of resources, it has the ____________?
Absolute Advantage
What is the law of optimal levels of production?
MB = MC
An _____________ is a loss of the benefit that would have been gained from choosing the alternative
Opportunity Cost
Who is it in a command economy that decides what goods are produced?
Central Planners
If a point is outside the PPC line. It is what?
Impossible
The ability to produce a good or service at a lower opportunity cost than another producer is known as?
Comparative Advantage
The additional amount of usefulness that someone gets from one extra unit of a good or service
Marginal Utility
What are all 4 factors of production?
Land, Labor, Capitol, Entrepreneurship
Technically what economy are all economies?
Mixed
If a PPC line is bowed outward. What type of opportunity cost is it?
Increasing Opportunity Cost
Focusing production on select goods to increase efficiency?
Specialization
When consuming each additional unit is less satisfying and getting smaller. We call this?
Diminishing Marginal Utility
Goods that do not diminish in quantity or quality when more people use them?
Non Rival Factor of Production
An economy with no gdp growth. With no government regulations. Would be called what?
Traditional Economy
If the PPC line is straight. It has what type of opportunity cost?
Constant Opportunity Cost
You go to your car dealer seeking a model that has a sound system you want. He says it will take 3 days to get that exact model, but you can drive away right now with one that has a better sound system and costs $300 more. You take that deal. What type of agent are you?
Irrational Agent
What are the three aspects to consumer choice theory?
Consumers are rational, never 100% satisfied, satisfaction decreases with every unit of consumption.