ECON 001 Study Guide - Final Guide: Mira-Bhayandar Municipal Corporation, Food Truck, Starbucks
Document Summary
14 multiple choice, 3 short answer (two will be on recent topics) Opportunity cost: the value of the best foregone alternative to any decision. Formula: price + net benefit: (net benefit= benefit-cost) O. c. of an increase in activity= marginal cost benefit that arises is marginal benefit. Library + study for econ test: value at . * can either get or - chooses because is max. value alt. * do not include value of of chosen option (lunch) Train tickets to ny= , benefit of . O. c. = 250- 50= (ignore sunk cost of plane ticket) Economics : the study of the allocation of scarce resources to satisfy unlimited wants. Ppf: the boundary between combinations of goods and services that ca be produced and those that can"t. Assumption: must have constraint on resource in at least one dimension. Developments of markets + trade: need to satisfy these unlimited wants. Assessing ppf: o. c. = slope, if constant o. c.
