Key Definitions
the idea that resources are limited and cannot meet people's needs and wants. Main idea underpinning Economics.
What is scarcity?
What is coffee?
You buy one slice of pizza for $3. Each slice after that costs the same. If you buy 2 slices, how much extra money did you spend for the second slice?
What is $3?
I’m crispy, salty, and come in a bag. You’ll find me at the corner bodega or on your lunch tray.
What is Potato chips?
I take you where you need to go, but during rush hour I’m packed like a can of sardines. Even if you squeeze in, there’s barely space to breathe. What am I?
What is MTA?
Any factor that is used in the production of goods and services.
What is a resource?
Who is the cook?
Over the weekend, you mow your aunt’s lawn and earn $20. Your neighbor next door asks you to mow their yard too but only offers $15. How much extra benefit would you get from saying yes to your neighbor?
What is $15?
You can’t hold me, but I’ll make your hair look brand new. You’ll find me in a local shop with mirrors and chairs.
What is a haircut?
I’m the reason people stand in long lines on Fordham Road or pay extra on StockX. I drop in limited quantities, and when I’m gone, I’m gone.
What are sneakers?
The belief of an investment in something because you already spent the resource in it
What is sunk cost fallacy?
"That will be $4!"
Who is the cashier?
You’ve been grinding for your economics test. After 2 hours of studying, you’re on track for an 80. Each extra hour of study time usually raises your score by about 5 points. If you study for one more hour, what’s your marginal benefit?
You pay to ride me, but you don’t own me. I help you get from the Bronx to Manhattan without using gas.
What is the MTA?
People wait hours for me in the summer. I’m cold, colorful, and served in a little paper cup from an umbrella cart. There’s never enough of me when the block gets hot.
What is Italian Ices?
The value of the next best option that is not chosen when a decision is made
What is the opportunity cost?
"I’m thinking of adding chopped cheese to the menu."
Who is the store owner?
A student-run clothing brand in your class makes hoodies to sell at the pop-up shop. It costs $40 total to make the first four hoodies. After making one more, the total cost jumps to $52. What’s the extra cost of making that 5th hoodie?
What is $12?
You scroll through me, laugh, and sometimes shop from my ads. You don’t buy me, but companies pay to keep me running.
What is social media?
Everyone wants me, but I’m hard to find, especially with a view of the city. I take up space, cost thousands a month, and often get snatched before you even apply.
What is an apartment?
The extra benefit of producing one more unit.
What is a marginal benefit?
"Swipe your card right here!"
What is the cash register?
You and your friends sell trays of brownies at a school fundraiser. After selling 3 trays, you’ve made $60 total. Selling a 4th tray brings in $74 total but costs you $20 more in ingredients. What’s your marginal benefit and marginal cost?
What is $14 and $20?
You buy me once, but keep using me every morning before class. Without me, your fit—or your breath—might not be fresh.
What is toothpaste?
Thousands of students apply, but only a few get in. I cost less than private school but still open doors to college. My seats are limited, and competition is fierce. What am I?
What is a specialized high school seat?