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| the benefits you could have received by taking an alternative action. |
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| An examination of the additional benefits of an activity compared to the additional costs of that activity |
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Positive economics is relatively scientific (testable) and focuses on value-free descriptions of and predictions about economic relationships.
Normative economics deals with values and addresses what should be rather than what is. |
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| generally refers to the economy, which is based on economies of all of the world's countries |
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| represents the various combinations of two goods which can be purchased with a given money income and assumed prices of goods |
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| Land, Labor, service/tertiary and quaternary |
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| Law of increaseing opportunity costs |
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| as production of a product increases, the cost to produce an additional unit of that product increases as well. |
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| A causes or caused B because A occurs before B |
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| An economy that is planned and controlled by a central administration, as in the former Soviet Union. |
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| focus on the needs or desires (interests) of oneself |
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| specialisation of cooperative labour in specific, circumscribed tasks and like roles |
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| Medium of exchange (use of money) |
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| intermediary used in trade to avoid the inconveniences of a pure barter system |
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| consumers determining the production of goods |
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| Where buyer and seller come together |
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| as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. |
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| A type of good for which demand declines as the level of income or real GDP in the economy increases. |
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| all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa. |
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| is a government- or group-imposed limit on how high a price can be charged for a product |
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| is a government- or group-imposed limit on how low a price can be charged for a product |
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| Price elasticity of demand |
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| is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price |
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| you've produced the good, you're not going to produced any more for now, all that remains is to sell it |
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| refers to the current rise in the average temperature of Earth's atmosphere and oceans and its projected continuation |
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| is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for |
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| Better allocation of resources |
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| "an item that yields positive benefits to people”[1] that is excludable |
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| Non-rivalry means that consumption of the good by one individual does not reduce availability of the good for consumption by others; and non-excludability means that no one can be effectively excluded from using the good |
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| or transaction spillover, is a cost or benefit not transmitted through prices [1] that is incurred by a party who did not agree to the action causing the cost or benefit. |
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| if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights. In practice, obstacles to bargaining or poorly defined property rights can prevent Coasian bargaining |
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