ECON 2000 Study Guide - Midterm Guide: Opportunity Cost, Comparative Advantage, Prkce
Document Summary
Why study economics: to learn a way of thinking, opportunity cost. Value of what you give up an economic activity or decision: you give up . Value of the next best use of resources used. : ex: eric capton ticket in your pocket that you can sell for. Do not pay attention to sunk costs . Terminology note- possible sources of terminology: ex: new tonics mechanics, euclidian geometry. Common english words but with a much more narrow meaning: ex: scarce scarcity english synonym: rare . More recent with point of economic thought. Ex: firm: should we produce one more unit: marginal cost vs. Individual- should i have one more beer? (however beer may affect rationality is the way to answer your question: efficient markets. Unbelievable opportunities are rare: usually should be believed. Terminology note- no free lunch : to understand society & history, to be an informed citizen such as for voting, more often introduced with opportunity cost .
