AEconomic Concepts Worksheet
Concept Application of Concept from Personal Experience Reference to Concept in Reading
Utility is the allocation of money, time and energy to maximize happiness and satisfaction. I just recently bought a flat screen television for my bedroom because I wanted the luxury of being about to watch television in the comfort of my bed. Although I had made the decision to get a television, I also have to take into consideration the size and brand I would be purchasing. UtilityBrue and McConnell (2004). Economics: Principle, problems and policies. Chapter 1, p. 4. New York: McGraw Hill Companies
Opportunity Costs are the sacrifices that are made to get more of one thing. I used to work in the jewelry department at a large retail store. The jewelry department only had 2 employees. However, the cash wraps had 2 people in each. Since the jewelry department was not as busy and not responsible for ...view middle of the document...
In this case there was no surplus or shortage hot dogs. This indicates that the product was at a price that I was willing to sell it for and consumers were willing to pay, which is referred to as equilibrium price and quantity. Market EquilibriumBrue and McConnell (2004). Economics: Principle, problems and policies. Chapter 3, p. 48. New York: McGraw Hill Companies
Production possibilities means using the limited resources to produce goods and services that will be most profitable or beneficial to the business or household. Factors of production are: land, capital, labor and entrepreneurial ability. I am an advisor for the senior class and one of my responsibilities is to fundraise for senior activities such as prom, senior trips and senior brunch. When it came to me deciding which fundraising ideas to use, I had to look at the resources I had and how I was going to use them so that the most profit was made. My first idea was to sell candy. I had to take into account how many students would actively participate (labor), the candy to be sold (capital), as well as marginal analysis. I also had to limit the amount of candy I bough to sell because I needed money for other fundraising purchases. Production PossibilitiesBrue and McConnell (2004). Economics: Principle, problems and policies. Chapter 2 p. 25, New York: McGraw Hill Companies
Determinants of Demandare factors that affect consumer purchasing resulting in a change in the demand curve. The determinants of demand are consumer preferences, number of consumers in the market, consumer income, prices of goods, consumer expectations about future prices and incomes. I shop at Walmart for bottled water. The Samâ€™s Choice water is $3.99 for 24 bottles. This ahs been the constant price for the last year at least since I have bought the water. I have chosen to purchase this water because other competitorâ€™s brands are more expensive and the bottles are smaller. The determinant of demand affecting my purchasing in this instance was my desire for a lower price. Determinants of DemandBrue and McConnell (2004). Economics: Principle, problems and policies. Chapter 3 p.42, New York: The McGraw Hills Companies