Economics 1021A/B Study Guide - Quiz Guide: Opportunity Cost, Marginal Cost, Marginal Product

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ECON 1021A/B Full Course Notes
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ECON 1021A/B Full Course Notes
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What are the 5 foundations of economics? incentives, trade, marginal thinking, opportunity cost, and trade-offs. What is a comparative advantage? the situation in which an individual, business, or country can produce at a lower opportunity cost than their competitor can. What is opportunity cost? the highest valued alternative that must be sacrificed in order to get something else. Why is housing not included in the cost of going to college? because cost is forgone income lost while in college, but you would have to pay for a house anyways. Who would specialize in a product? the person with the lower opportunity cost in producing that product. If a country specializes in a product, should they export or import that good? export. What is the difference between decrease/increase in quantity supplied and a decrease/increase in supply? quantity supplied is the amount of a good and service that producers are willing and able to sell at the current price.

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