Vocabulary
The value of the next-best alternative you give up when making a choice.
opportunity cost
Where did it begin?
The Netherlands
What is human capital?
Skilled labor
Breakdown the meaning of Oikonomia.
Oiko - household
Nomia - laws
“Managing the household”
What did hunter-gatherer humans rely on for resources?
Their immediate environment
An economic system that does not engage in trade or financial transactions w/ other countries.
Closed Economy
What important invention did steel create?
Trains/Railroads
What is physical capital?
Machines
Define economics.
Study of managing and allocating resources.
Define The Agricultural Revolution.
“Birth of market”
Producers of goods & services or businesses
Firms
Who wrote Wealth of Nations?
Adam Smith
What two factors impact human capital?
Education and Immigration
Define interest.
Profit on rented money
What is the interaction with other countries/entities?
Globalization
Specializing in tasks to increase efficiency.
Division of Labor
What types of cost compromise the principal amount?
Accounting costs
What two concepts contribute to the flow of economics?
Firms & Households
Define revenue.
Payment businesses receive.
Why did people start farming?
To create a surplus of food and goods allowing for systematic trades.
Labor, Land, Capital, Entrepreneurship
Economic Resources
What types of costs are invisible?
Economic
If a football player gets a contract for $23 million per year, but must put their career on pause to get a USC education for $400k, what’s the opportunity cost?
$92.4 million
Define macroeconomics.
The study of the economy as a whole.
What is a bazaar?
Traditional marketplace