BIOL 1002 Chapter : Review QUESTIONS EXAM 2 On CH 22 23 ANSWERS EMBEDDED
Document Summary
Economics- the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. The key word in this definition is choose. In large measure, it is the study of how people make choices. The choices that people make, when added up, translate into societal choices. Opportunity cost- the best alternative that we give up when we make a choice. If you decide to go to a movie you are paying for a movie ticket but it is also costing you the money that you could be making if you had worked instead. Marginalism- the process of analyzing the additional or incremental costs or benefits arising from a choice or decision. If an airplane is about to take off with empty seats, the marginal cost of an extra passenger is essentially zero. Thus it is profitable for them to sell some tickets at a discount price to a company like.
