Economics EOC Review

The study of how society allocates scarce resources.

• Microeconomics
• Macroeconomics
• Scarcity
• Economics

Opportunity cost is...

• The choice you made
• The value of your choice not made 
• The next unit, or increment, of an action
• The additional benefit received from the consumption of the next unit of a good or service.

Also called "factors of production," there are commonly grouped into the four categories: land, labor, physical capital, and entrepreneurial ability. 

• Product
• Resources
• Utility
• Marginal

The resource that includes equipment, machinery, buildings, and tools.

• Land
• Labor
• Capital 
• Entrepreneur

The additional benefit received from the consumption of the next unit of a good or service.

• Marginal Benefit
• Marginal Cost
• Opportunity Cost
• Economics

Marginal Cost is...

• The additional benefit received from the consumption of the next unit of a good or service. 
• How much things cost
• The additional cost of producing one more unit of output.

Absolute Advantage is...

• Production of goods or performance tasks based up on comparative advantage. 
• The ability to produce a good at a lower opportunity cost than all other producers. 
• The ability to produce more a good than all other producers. 
• The act of exchanging goods and services for other goods and services. 

The ability to produce a good at a lower opportunity cost than all other products. 

• Comparative Advantage
• Absolute Advantage
• Specialization 
• Opportunity cost

An economic system in which resources are allocated through the decisions of firms and consumers (Suppliers and Demanders)

• Market Economy (Capitalism)
• Command Economy
• Economy
• Traditional Economy

The effect that increasing or decreasing prices has on the buying power of income is better known as....

• Income Effect
• Substitution Effect
• Marginal decreasing income
• Inflation