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Social Studies skills: Difference between revisions
→Economics
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* see also | * see also | ||
** [https://www.cairn.info/revue-cahiers-d-economie-politique-1-2015-2-page-203.htm The discovery of the comparative advantage theory (on James Mill, 1821)] | ** [https://www.cairn.info/revue-cahiers-d-economie-politique-1-2015-2-page-203.htm The discovery of the comparative advantage theory (on James Mill, 1821)] | ||
=== Economies of scale === | |||
* definition: lower costs of production based upon higher volume | |||
** i.e., the larger the production facility, the cheaper it costs to produce any single item | |||
* economies of scale result from: | |||
** greater efficiency in higher production rates | |||
** greater purchasing power to lower costs of supplies and materials | |||
** lower per capita labor cost per cost of unit produced | |||
===Opportunity Cost=== | ===Opportunity Cost=== | ||
* | * definition: The value of the next best choice one had when making a decision. | ||
** i.e., the trade-off of a decision. | ** i.e., the trade-off of a decision. | ||
** Opportunity cost is a way of measuring your decisions: if I do this, would having done something else been more or less expensive? What did I give up in my decision? | ** Opportunity cost is a way of measuring your decisions: if I do this, would having done something else been more or less expensive? What did I give up in my decision? | ||
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*** i.e., the buyer and the seller gain equal value | *** i.e., the buyer and the seller gain equal value | ||
*** thus the "sum" of the transaction is "zero" | *** thus the "sum" of the transaction is "zero" | ||
== Logic and observational fallacies == | == Logic and observational fallacies == | ||