Economic Principles: Chapter 1 & 2 Review

Marginal (correct)

Opportunity cost

Absolute advantage

Comparative advantage

Measuring costs and benefits as proportions instead of absolute amounts

Ignoring opportunity costs

Comparing prices without considering quality (correct)

Thinking at the margin

Choosing based on emotions

Choosing based on absolute advantage

Choosing based on convenience

Choosing based on comparative advantage (correct)

<p>Taking action only if the benefit exceeds the costs</p> Signup and view all the answers

<p>Stressing the relevant costs and benefits</p> Signup and view all the answers

<p>Explicit and implicit costs unless stated otherwise</p> Signup and view all the answers

<p>Opportunity costs principle</p> Signup and view all the answers