Chapter 2 Flashcards
(3 cards)
1
Q
What are the 3 fundamental questions of economics due to the existence of scarcity?
A
What products will be produced?
How will these products be produced?
For who will these products be produced for?
2
Q
What is opportunity cost?
A
Opportunity cost refers to the trade off when you make a certain decision over another. For example, when you go to college, you forgo the potential hours that could be spent working a job instead and getting money, trading off the potential money for education.
3
Q
What is marginal analysis?
A
Marginal analysis simply means comparing the benefits to the cost of additional actions.
