lesson 1.1 Warm Up

the amount a BUYER (or consumer) pays for a good service; what you see on the sticker.

• Price

• Cost

• Trade-off

• Marginal Analysis

The idea that society has unlimited wants with limited productive resources to obtain those wants.

• Scarcity

• Macroeconomics

• Microeconomics

• Marginal Analysis

You buy a delicious brownie and eat the heck out of it. You go back to buy a second and, while it is still delicious, you are getting fuller and not really enjoying it as much as the first time. Because you have a big back soul, you go and grab a third brownie and promptly throw up everywhere. What economic concept have you just demonstrated?

• Decreasing marginal utility

• Increasing marginal utility

• Opportunity Costs

• Trade-offs

These are good created for everyday people like you and me; TVs, iPhones, Nikes, video games, etc.

• Consumer goods

• Capital goods

• Allocated goods

• Marginal goods.

The idea that we make choices based on logical outcomes by weighing the cost/benefit of any decision.

• Rational decision making

• Marginal decision making

• Microeconomics

• Macroeconomics

The study of economics on a large scale; international trade, fiscal and monetary policy, inflation. it is BIG picture stuff.

• Macroeconomics

• Microeconomics

• Marginal Analysis

• Opportunity costs

Are mosquitoes scarce?

• No; they are neither limited nor desirable.

• No; they are limited but not desirable

• No; they are not limited but are desirable

• Yes; they are both limited and desirable