
Living Economics: The Opportunity Cost
The opportunity cost is defined as the second-best alternative use of the resource. A use that you sacrifice in using the resource in this way. Continue reading Living Economics: The Opportunity Cost
The opportunity cost is defined as the second-best alternative use of the resource. A use that you sacrifice in using the resource in this way. Continue reading Living Economics: The Opportunity Cost
Trade-Offs occur where choosing one option means sacrificing something in return. There is a cost to the choice. Continue reading Living Economics: Incentive Driven Trade-Offs
Selfish and Social Interests produce the Incentives that motivate decision-making processes. Continue reading Living Economics: The Power of Incentives
The Circular Flow Diagram depicts the national economy — the parties, the markets, and how they interact. Continue reading Living Economics: Basic Circular Flow Diagram
Value Creation is the process of creating new, greater value from the same, original resource. This generally occurs through manufacturing, trade, or marketing Continue reading Living Economics: Value Creation
The five principal ways to categorize resources include:
1) Natural Resources v. Man-Made Resources
2) Unlimited Resources v. Limited Resources
3) Tangible Resources v. Intangible Resources
4) Variations of Business Assets
5) Capital v. Labor Continue reading Living Economics: The World of Resources