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CH1 The Market system: scarcity, choice & opportunity cost - Coggle…

- - - - marginal benefit: the additional benefit gained form consuming or producing one more unit of the good / service
      - marginal cost: the additional cost incurred from consuming or producing one more unit of the good / service
    - - consumer: decision-making process
        
        constraint
        
        opportunity cost
        
        costs and benefits
        
        data
        
        perspectives
        
        intended consequences
        
        unintended consequences
      - consumer's decision - impact on producer
      - consumer's decison - impact on the government
  - - - is achieved when the firms in an economy are producing the maximum output for the given amount of inputs, or producing a given output with the least cost combination of inputs
    - - is achieved when the current combination of goods and services produced and consumed allows the society to attain the greatest level of satisfaction
- - - - measured bt the percentage annual change in national output actually produced
      - illustrated by an outward movement form a production point from the PPC to production point closer to ot on the PPC
    - - defined as an increase in the productive capacity of the economy
      - illustrated by an outward shift of the PPC
      - main resources
        
        increases in the quntity of resources
        
        improvement in the quality of resources