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 the bulk of sales, leadership chose to place more staff elsewhere. This would optimize sales and customer service. Opportunity costBrue and McConnell (2004). Economics: Principle, problems and policies. Chapter 1, p. 4. New York: McGraw Hill Companies
Market Equilibrium is the state of balance between supply and demand, which indicates no shortage or surplus. Yesterday I sold hot dogs at a school function. I bought 5 packs of hot dogs (50 total) and I charged $1 each. By the end of the game I had sold all the hot dogs. They lasted the whole game and at the end no one was looking to purchase one. 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...