CHAPTER # 2 QUIZ - THE ESSENCE OF ECONOMICS

THE ESSENCE OF ECONOMICS IS THE ART OF DECISION MAKING . IN THIS CHAPTER WE STUDY :

FUNDAMENTAL DECISION MAKING CONCEPTS ; THE FIRST LAW OF ECONOMICS AND LIFE ( TANSTAAFL ) , TRADE OFFS , AND OPPOTUNITY COSTS

HOW TO CONDUCT MARGINAL ANALYSIS ; MARGINAL COSTS , MARGINAL BENEFITS , AND MARGINAL UTILITY , IMPLICIT COSTS , EXPLICIT COSTS , AND SUNK COSTS

FUNDAMENTAL BUSINESS MEASUREMENTS ; REVENUE , COSTS OF PRODUCTION , ADMINISTRATIVE COSTS , AND PROFIT ( ACCOUNTING AND ECONOMIC )

FUNDAMENTAL ECONOMIC MEASUREMENTS ; PRODUCTION POSSIBILITIES CURVE , PRODUCTIVITY , EFFICIENCY , MARGINAL PRODUCT , MARGINAL PRODUCT OF LABOR , INCREASING / DIMINISHING / AND NEGATIVE MARGINAL RETURNS , DIVISION OF LABOR , SPECIALIZATION , COMPARATIVE AND ABSOLUTE ADVANTAGES , AND THE LAW OF INCREASING COSTS