all possible consumption combinations of goods that someone can afford, given the prices of goods, when all income is spent; the boundary of the opportunity set

• comparative advantage

• marginal analysis

• Budget Constraint

• opportunity cost

measures cost by what we give up/forfeit in exchange; opportunity cost measures the value of the forgone alternative

• Opportunity Set

• Opportunity Cost

• Budget Constraint

• Marginal Analysis

all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income

• Marginal Analysis

• Utility

• Opportunity Cost

• Opportunity Set

satisfaction, usefulness, or value one obtains from consuming goods and services

• Opportunity Cost

• Sunk Cost

• Utility

• Opportunity Set

costs that we make in the past that we cannot recover

• Utility

• Sunk Cost

• Opportunity Cost

• Opportunity Set