Fundamental Concepts
How people make choices when based on ______
scarcity
Man made productive resource
capital
Giving up one thing for another is called what
trade off
Study of large economic models
macroeconomics
Temporary unemployment would put you where on the PPC
Inside the curve
The value of the next best alternative given up
opportunity cost
Taking a risk productive capital
entrepreneurship
When looking at opportunity cost you look at how many choices
2
A reward to get you to act a certain way
incentive
Points on the frontier of the PPC are this
maximum
A temporary lack of goods is called this
shortage
Human capital is also known as
labor
How do you determine which choices factor into opportunity cost
Rank them
Study of small economic models
microeconomics
consumer goods
Scarcity can be eliminated with unlimited resources
t/f
False
Natural resources capital is also called
land
All of economics boils down to this
choice
Decision makers look at this benefit and this cost (same word)
marginal
Resources are not perfectly this
adaptable