click below
click below
Normal Size Small Size show me how
Economics Unit1
Question | Answer |
---|---|
TINSTAAFL | there is no such thing as a free lunch |
Economics | The social science concerned with how individuals, institutions and society make optimal choices under condition of scarcity. |
Productive Efficiency | occurs when the economy is utilizing all of its resources, and operates at its production possibilities curve (frontier) |
Allocation Efficiency | a situation in which the limited resource of a firm are allocated in accordance with the wishes of consumers |
Law of Diminishing Returns | The principle that as successive increments of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease. |