Basic Economic Concepts and Principles

Front

Scarcity

Back

Limited resources vs. unlimited wants.

Front

Opportunity Cost

Back

The next best alternative foregone.

Front

PPC (Production Possibilities Curve)

Back

A graph showing trade-offs and efficiency.

Front

Comparative Advantage

Back

The ability to produce a good at a lower opportunity cost.

Front

Absolute Advantage

Back

The ability to produce more of a good using the same resources.

Front

Marginal Analysis

Back

Comparing additional benefits and costs.

Front

Law of Demand

Back

Price ↑, Quantity Demanded ↓ (inverse relationship).

Front

Law of Supply

Back

Price ↑, Quantity Supplied ↑ (direct relationship).

Front

Equilibrium

Back

Where quantity demanded = quantity supplied.

Front

Price Ceiling

Back

Max legal price (can cause shortage).