ECO-2023 Study Guide - Comprehensive Midterm Guide: Demand Curve, Houston Comets, Tree Farm
Document Summary
Scarcity - fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like. Choice - the act of selecting among alternatives (trade-offs) Resources - the ingredients, or inputs, that people use to produce goods and services. Capital - human-made resources used to produce other goods and services tools. Yew-tree: trash tree objective - a fact based on observable phenomena that is not influenced by differences in personal opinion subjective - an opinion based on personal preferences and value judgements. Rationing - allocating a limited supply of a good or source among people who would like to have more of it. Economic theory - principles assembled in a manner that makes clear the cause-and-effect relationships. Opportunity costs- the highest valued alternative that must be sacrificed as a result of choosing an option. Economizing behavior - chasing the option that offers the greatest benefit at the least possible cost.
