Summary of Austin Frakt & Mike Piper's Microeconomics Made Simple

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 Marginal utility is the additional utility gained from consuming an additional unit of a particular good. It is the reason people do not spend all of their money on a single good: consumption of most goods comes with decreasing marginal utility.
#2 The opportunity cost of a choice is the value of the best alternative that you must forgo in order to make that choice. The opportunity cost of going to a movie is the forgone utility from the next most enjoyable activity you could have done.
#3 In economics, the factors of production are the inputs used to create finished goods. They are land, labor, and capital. The ideal situation is to use all resources to their fullest capacity, or use the fewest possible resources for any given level of output.
#4 A production possibilities frontier illustrates the various choices that an economic entity can make when choosing what to produce, given the constraints imposed by its limited factors of production.

Sujets

• Business
• Economics
• Microeconomics

Informations

• Publié par: Everest Media LLC
• Date de parution: 30 avril 2022
• Nombre de lectures: 0
• EAN13: 9781669394372
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Austin Frakt & Mike Piper's Microeconomics Made Simple
Contents Insights from Chapter 1 Insights from Chapter 2
Insights from Chapter 1

#1

Marginal utility is the additional utility gained from consuming an additional unit of a particular good. It is the reason people do not spend all of their money on a single good: consumption of most goods comes with decreasing marginal utility.

#2

The opportunity cost of a choice is the value of the best alternative that you must forgo in order to make that choice. The opportunity cost of going to a movie is the forgone utility from the next most enjoyable activity you could have done.

#3

In economics, the factors of production are the inputs used to create finished goods. They are land, labor, and capital. The ideal situation is to use all resources to their fullest capacity, or use the fewest possible resources for any given level of output.

#4

A production possibilities frontier illustrates the various choices that an economic entity can make when choosing what to produce, given the constraints imposed by its limited factors of production.

#5

The production possibilities frontier is the set of all possible points where a state can produce an item. Washington wants to produce apples and oranges in some combination along its frontier, but it can’t produce beyond the frontier.