Micro econ exam 1 vocab

You like to read GQ (Gentlemen's Quarterly) and Golf Digest. You have only $6 to spend and can buy only one magazine, so you buy only Golf Digest. Which economic concept does this statement BEST represent?

Scarcity

An individual supply curve is

a graph with quantities of a product that a seller is willing to supply at different price points.

Substitutes-in-production

allows a business to have alternative uses of its resources by manufacturing other products using the same inputs.

A market where no single buyer or seller can influence the price is a:

competitive market.

a guide to decision-making which states that an individual should undertake an activity if and only if the additional benefit of doing so is greater than or equal to the additional cost of doing so.

cost benefit principle

The principle that your best choice depends on your other choices, the choices others make, developments in other markets, and expectations about the future is known as the _____ principle.

interdependence

Increase the level of an activity as long as its marginal benefit exceeds its marginal cost. Choose the level at which the marginal benefit equals the marginal cost.

marginal princple

Asking "Or what?" allows the _____ principle to be analyzed as a simple question.

opportunity cost principle

The typical supply curve illustrates that:

other things equal, as price rises, the quantity supplied of the good rises.

Dependencies over time reflect the fact that

resources can be spread across time.

_____________ forces us to make choices.

scarcity

Economists convert costs and benefits into money equivalents by evaluating an individual's

willingness to pay.