ch 1 terms

Question 1

scarcity

Answer 1

lack of abundance of smt

Question 2

diminishing returns

Answer 2

decrease in ROI
graph curve trajectory flattens

Question 3

define economics

Answer 3

study of how society manages scarce resources

Question 4

define giffen good

Answer 4

good that generates higher demand as prices ride

Question 5

difference between opportunity cost, and marginal rate of substitution

Answer 5

OC is what we can afford
MRS is what we want