ECON 1115 Study Guide - Midterm Guide: Scientific Modelling, Marginalism, Opportunity Cost
Document Summary
Law of opportunity cost- law exists because not all resources are equally suitable in the production of all goods. Opportunity cost: what you are giving up. Utility: the pleasure, happiness, or satisfaction from obtaining a good. Marginal analysis: comparison of marginal benefits to marginal costs (marginal meaning next) Economic principle: a statement about economic behavior or the economy that enables prediction of the probable effects of certain actions. Generalizations: relate economic behavior to the economy itself. Other-things-equal assumption: the assumption that factors other than those being considered are consistent. Graphical expression: use of graphs to represent economy: positive economics: focuses on facts and cause-and-effect relationships (the.
