EMS (Assignment 6 - Economic desisions)

Define cost

• It is what you lose or sacrifice to get something else.

•  
           It is the next best alternative or real cost given up by choosing another item
  or the next best alternatives foregone

• 
   The action of sharing something out among a number of recipients.

Define consumption

• The action of making or manufacturing from components or raw materials.

• Using, buying or eating something

• The action of sharing something out among a number of recipients.

Define distribution

• The action of sharing something out among a number of recipients.

• The action of making or manufacturing from components or raw materials.

•  
           It is the next best alternative or real cost given up by choosing another item
  or the next best alternatives foregone.

The fundamental economic problem is ....

• production

• living expenses

• scarcity

Define opportunity cost

• 
           It is the next best alternative or real cost given up by choosing another item
  or the next best alternatives foregone.

• 
   The action of sharing something out among a number of recipients.

• It is what you lose or sacrifice to get something else

What are the three main kinds of decisions?

• Consumption, distribution, opportunity cost

• Distribution, consumption, production

• distribution, production, cost

Define production

• Using, buying or eating something.

• The action of sharing something out among a number of recipients.

• The action of making or manufacturing from components or raw materials.

The three main questions of economics are ...

• For who?

• Will customers buy the product?

• What to produce?

• How to produce?

• How will a business benefit from this decision?

Economics assumes that firms, individuals, and governments behave rationally.

• True

• False

So you determine the opportunity cost of your needs by sacrificing ______ important needs to satisfy other desires.

• more

• less