Economics
Economics
- See also [Social Studies Skills|Social Studies Skills]
[Category:Social Studies]
Useful Economic vocabulary, models & theories
Cost
- sunk cost
goods
- Complement good
- Coordination good
- Free goods
- Inferior goods
- Normal goods
- Public good
- services available to all that have no competition, such as utilities
- use of a public good by one person does not reduce its availability to another
- services available to all that have no competition, such as utilities
- Substitute good
Externalities
- = impacts or consequences upon others (external)
- externalities have an inherent duality
- the external actors must be present for the external impact
- i.e., if nobody lives near the factory, its noise won't bother anyone
- the noise is an externality only because people can hear it
- however, those people living near it may have a benefit that is greater than the externality
- such as jobs, whatever the factory is making, etc.
- i.e., if nobody lives near the factory, its noise won't bother anyone
- from economist Cose
- the external actors must be present for the external impact
Opportunity cost
Prisoner's Dilemma
- each prisoner does not know what the other will choose, so they choose the most beneficial to themselves
- even if choosing collectively would be more rational
- see https://plato.stanford.edu/entries/prisoner-dilemma/
rationing
scarcity
- aggregate supply