ECON 2301 chap 1
Market
An arrangement or institution that brings buyers and sellers of a good or service together
According to the rationality assumption,
People do not intentionally make decisions that would leave them worse off
The principle of opportunity cost evolves from the concept of
Scarcity
Invention
The development of a new good
Natural resources
The resources provided by nature and used to produce goods and services
Physical capital
The stock of computers, factory buildings and machine tools used to produce goods
Economics
concerned with how people respond to incentives.
One of the first steps in deciding whether to complete your education is to
evaluate the marginal cost and marginal benefit of that decision
Economists believe that an individual or firm should continue any activity until... .
marginal benefit is equal to marginal cost
Centrally planned economy
the government decides how economic resources will be allocated