Part 1
Something that is desirable but limited
What is Scarcity?
Marginal Thinking
What is The Rule of Rational Choice?
Applies to everyone
What is Scarcity?
What is additional?
How people do behave
What is Positive Analysis?
MexB > MexC
What is The Rule of Rational Choice?
Using data/results to test a hypothesis
What is Empirical Analysis?
Intangible
What are Services?
How people should behave
What is Normative Analysis?
The number of the different Economic Systems
What is 3?
Holding all things constant
What is Ceteris Paribus?
Preferences, ability to rank, maximize your utility
What is Rationality?
CELL
What is Capital, Entrepreneurship, Land and Labor?
Economic Thinking
What is Rationality?
When the market fails to allocate its resources efficiently
What is Market Failure?
The 3 P's
What is Price, Profit and Property Rights?
A consequence for every action
What is Costs?
Another word for utility
What is Satisfaction?
If A then B
To become an expert at a specific task
What is Specialization?
Everyone gets an equal economic outcome
What is Egalitarianism?
Skills & Knowledge
What is Human Capital?
This does matters
What are Incentives?
Encourages people to do something
What are Positive Incentives?
Comparative Advantage
What is producing a good or a service at a lower opportunity cost?