Econ Basics
This economic conflict exists because human wants are unlimited but resources are limited.
Insatiability vs. scarcity
This branch of economics studies individual consumers and businesses.
Microeconomics
This model shows the trade-offs between two goods and is usually curved or bowed outward
PPC (Production Possibilities Curve)
This principle states that each additional unit brings less satisfaction than the previous one. (Carl Menger)
diminishing marginal utility
This insurance covers doctor visits and medical care.
Health insurance.
Explain the diamond-water paradox
The value of something is in the consumer. Water may be more beneficial and essential than diamonds to some people.
This branch of economics looks at inflation, unemployment, and the entire economy.
Macroeconomics
The main purpose of a PPC is to show this economic concept.
Opportunity cost and efficiency. (As long as you got efficiency you are fine, but it is both)
This is a government-set minimum price, such as minimum wage.
Price floor
This insurance protects your car and pays after accidents. Must pay it monthly. Can go up if you get in accidents.
Auto insurance
This type of value is based on personal preference rather than usefulness.
Subjective value.
An example of this is studying how one store sets prices.
Microeconomics
This model shows money, goods, and services flowing between households and firms.
circular flow model
This is a government-set maximum price, like rent control
Price ceiling
This insurance you need a beneficiary for, and it supports your family financially if you die.
Life insurance
This type of value refers to an item’s usefulness regardless of opinions.
intrinsic value
An example of this is studying national unemployment rates.
Macro.
The purpose of the circular flow model is to show how these things move through the economy.
Resources, goods, services, and money. (Households and firms)
According to Carl Menger, prices are determined by this, not production costs.
Consumer value or subjective value
This is why life insurance is especially important
Creates financial stability for your family if anything happens to you. Also, helps with any outstanding debt accrued in your life
This concept explains why value is determined by the least important use of a good rather than its total usefulness.
Marginal Utility.
Rising unemployment caused by a nationwide recession would be analyzed by this branch of economics.
Macro
When a PPC shifts outward, it usually indicates this has occurred in the economy.
What is economic growth or an increase in resources/technology
This economic effect explains why consumers buy less of a product as its price increases.
Law of demand
What are the three types of life insurance policies?
Universal life, term life and whole life