Define the following: economics, scarcity, and rational person assumption
List and define the four economic resources
Bill decides to spend the evening studying for his economics exam, rather than see a movie with friends. Explain his actions in terms of ‘opportunity cost’
Explain Adam Smith’s ‘Resource Owner Motivation Theory’ (also known as the ‘Invisible Hand Concept’)
Compare and contrast marginal cost and marginal benefit. When will an activity be continued using these concepts? Provide an example
Explain the difference between macroeconomics and microeconomic
Define: consumer surplus, producer surplus, and production possibilities frontier
Provide examples of both positive and negative externalities (other than the book examples)
Describe the following: economic efficiency, economic inefficiency, and economic growth. Where are each of these concepts located on a production possibilities frontier?
Describe the ‘capitalistic and socialistic visions’, as it relates to economic systems
List the three fundamental economic questions that all societies must consider, and how are these questions answered?
Define: market failure, government regulation of externalities, and pollution controls