ECON 2000 : Econ Study Guide 1 5
Document Summary
Opportunity cost- trade offs: what you are giving up when making a decision. Scarce- limited: exp: time 24 hours in a day. Marginalism: the process of analyzing the additional or incremental costs or benefits arising from making a choice. Sunk cost: costs that cannot be avoided because they have already been incurred, exp: developing a program cost a lot of money; however selling the disc once it is created is cheap. The sunk cost is the money spent on developing the program. Efficient market: a market in which profit opportunities are eliminated almost instantaneously. Industrial revolution: new technology in europe in the late 18th century and early 19th century caused economic growth and people to move into cities from the rural areas. That examines the functioning of individual industries, and the behavior of individual decision-making units, firms and individual households. Macroeconomics: the branch of econ that examines the economic behavior of aggregates- income, employment, output etc. on a national scale.
