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.
Living Economics: Incentive Driven Trade-Offs
Trade-Offs occur where choosing one option means sacrificing something in return. There is a cost to the choice.
Living Economics: The Power of Incentives
Selfish and Social Interests produce the Incentives that motivate decision-making processes.
Living Economics: Basic Circular Flow Diagram
The Circular Flow Diagram depicts the national economy -- the parties, the markets, and how they interact.
Living Economics: Value Creation
Value Creation is the process of creating new, greater value from the same, original resource. This generally occurs through manufacturing, trade, or marketing
Living Economics: The World of Resources
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