Exam 1 Flashcards
(23 cards)
Combinations of two goods that can be produced given scarce resources is reflected through…
Production Possibilities Curve (PPC)
Production outside PPC results in…
Scarcity
Production inside the PPC results in…
Inefficiency
The ability to produce more of more of EVERYTHING causing the curve to shift right is considered…
Growth
Foregone net benefits of not doing your next best choice is called…
Opportunity Cost
MC = MB is called…
Point of Optimality
When benefits and/or costs accrue to innocent third parties is…
Externality
What are the 3 Parts of the Biosphere?
Economics, Ecology, Ecumenism
What is the main relationship within the Biosphere?
Integrated Education
Oikos is the ancient Greek term for…
Household
The 3 Factors of Circular Flow Income
Households, Firms, and Government
GNP is…
Gross National Product
GDP is…
Gross Domestic Product
People act in their own self interest. Hence, people act if marginal benefits…
outweigh costs
True/False: Externalities can be both positive or negative.
True
Any point on the PPC curve is considered…
Choice
GNP is based on…
ownership
Aggregate economic activity that includes only the output of factors of production owned by residents of a particular country is…
GNP
Market value of everything produced within borders of a country during a particular period of time is…
GDP
The diamond water paradox is an example of…
Diminishing Marginal Utility
SO2 permits for pollution can be bought by firms in order to internalize costs which can be passed onto consumers.
Corporate Pollution Policy
area under the marginal cost/benefits curve =
net benefits/costs
Good economic policies lead to…
Green Behavior
