Economic By:Dalton G.

Externality : a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved, such as the pollination of surrounding crops by bees kept for honey.

The externality of keeping bees around honey will better supply you.

Scarcity: is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs

There is a scarcity of yeezys because of how money people love them.

Economic Perspective focuses on how resources are distributed in an organizational setting. Philosophies that stem from the economic perspective concentrate on leveraging or manipulating those resources.

The economic perspective of having a debit card will better put your money away.

Rational Self Interest: is the principle that an action is rational if and only if it maximizes one's self-interest. The view is a normative form of egoism.

The rational self interest of getting a nice car is enjoying it.

Opportunity Cost: the loss of potential gain from other alternatives when one alternative is chosen.

The opportunity cost of a bad T.V show will loose the corporation money.

Marginal Cost : the cost added by producing one additional unit of a product or service.
Marginal Benefit is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. A person's marginal benefit is the maximum amount he is willing to pay to consume that additional unit of a good or service

The marginal benefit of getting a good job will gain you much more money in the future.

Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.

Stock brokers are experts in marginal analysis because they need to understand stocks.

Utility: the state of being useful, profitable, or beneficial.

Making utility cheaper will help home owners pay less.

Incentives: a thing that motivates or encourages one to do something

The incentive of having a good job will be having a better gain in income.

Monetary Incentive: is a money-based reward given when an employee meets or exceeds expectations. Monetary incentives can include cash bonuses, stock options, profit-sharing and any other type of reward that increases an employee's compensation

A monetary incentive of having a good job will be cash bonuses given to the employee


Supply: make (something needed or wanted) available to someone; provide.

The supply of water is going lower and lower.

Demand: an insistent and peremptory request, made as if by right.

The demand in yeezys are so high that the supply become so little.

Economics: the branch of knowledge concerned with the production, consumption, and transfer of wealth

Economics is very good to learn if you want to enter a marketing field.

market: a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities

If the market crashes, prices go up.

Public goods: a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.
Private Cost: A producer's or supplier's cost of providing goods or services. It includes internal costs incurred for inputs, labor, rent, and depreciation but excludes external costs incurred as environmental damage

The private cost of buying a house will be paying for cleaning meterials.

External costs occurs when producing or consuming a good or service imposes a cost upon a third party. If there are external costs in consuming a good (negative externalities), the social cost will be greater than the private cost
Private Benefit doctrine is derived from the requirement under section 501(c)(3) of the Internal Revenue Code that an organization be organized exclusively and operated primarily for one or more qualifying exempt purposes

The private benefit of getting a car is selling it.

external benefit occurs when producing or consuming a good causes a benefit to a third party. The existence of external benefits (positive externalities) means that social benefit will be greater than private benefit
Negative externality is a cost that is suffered by a third party as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organization, property owner, or resource that is indirectly affected.
Traditional economy is an original economic system in which traditions, customs, and beliefs help shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.
Command Economy: an economy in which production, investment, prices, and incomes are determined centrally by a government
market economy is an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses. There is little government intervention or central planning.

There are many stores in the United States that has a market economy.

Mixed Economy: an economic system combining private and public enterprise.

Some small stores have a mixed economy because they inflate prices.

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