Models?!?!
How Many?!?
Relationship?
Costs and Constraint
Demand Curves?
100
What is the economic model?
A mathematical simplification of reality
100
What is a trend?
A popular good or service that most consumers buy
100
What does economics study?
How people and society make choices
100
What is the measurement of happiness in economics?
Util
100
Why is donating considered “selfish?”
Because it gives the person happiness
200
What motivates a person to make a particular decision?
Happiness/Utility
200
Name some limitations to the economic model of decision making.
Resources and Technology
200
Why are we forced to make choices?
Scarcity
200
What is opportunity cost?
The value of your next best choice
200
Draw an example of a demand curve...
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300
What are the three steps of the economic model of decision making?
1) Utility
2) Limitations
3) Cost Benefit Analysis
300
What is Quantity Demanded?
Amount demanded at various price levels
300
What does the 2nd stage of the economic model study?
Constraints/Limitations
300
Give an example of an opportunity cost.
Going to ballgame instead of the movie
300
What does technology improve?
Standard of living
400
What does the economic model study?
The 3 step process of decision making
400
Give examples of technology (past and present) that improved our decision making.
Cell phones, internet etc.
400
What is an example of an inverse relationship?
Price and Demand Elasticity
400
What are resource constraints?
Time, Natural Resources etc.
400
How do laws constrain our decision making?
Limit what people can and can not choose
500
Why is it a good thing that limited resources go to the highest bidders?
The resource will be taken care of and used correctly
500
Which stage of the economic model studies the choice of the option in which the benefits outweigh the costs? (Cost Benefit Analysis) Stage 1,2,3?
3
500
What is diminishing marginal utility?
Additional or marginal input from a good or service diminishes utility.
500
What is marginal utility?
The amount of utility the good or service brings depends on how much the person has already had.
500
What happens to utility when introduced with the same product more than once, twice and so on?
Diminishing Utility