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FIRST PUBLISH OCTOBER 2024
Econ 430 WSU EXAM 1 Study Guide
Solutions
Economic Efficiency - ANSWER✔✔Outcome (quantity) that achieves the greatest net benefit
Net Benefit - ANSWER✔✔Total Benefit-Total Cost
Total Cost - ANSWER✔✔Cost of obtaining the quantity
Marginal Analysis - ANSWER✔✔Compare the costs and benefits of doing a little bit more v.s. a little bit
less
Marginal Cost - ANSWER✔✔Cost of one additional unit
Economically Efficient Outcome (Qefficient) - ANSWER✔✔Marginal Benefits=Marginal Cost
How do we measure cost? - ANSWER✔✔
What is Value? - ANSWER✔✔Value=Benefit
How do we characterize the value of resources? - ANSWER✔✔Use Value & Non-Use Value
Use Value - ANSWER✔✔Attributes somehow get used. Extractive and non-extractive
Page 1/2
FIRST PUBLISH OCTOBER 2024
Econ 430 WSU EXAM 1 Study Guide
Solutions
Economic Efficiency - ANSWER✔✔Outcome (quantity) that achieves the greatest net benefit
Net Benefit - ANSWER✔✔Total Benefit-Total Cost
Total Cost - ANSWER✔✔Cost of obtaining the quantity
Marginal Analysis - ANSWER✔✔Compare the costs and benefits of doing a little bit more v.s. a little bit
less
Marginal Cost - ANSWER✔✔Cost of one additional unit
Economically Efficient Outcome (Qefficient) - ANSWER✔✔Marginal Benefits=Marginal Cost
How do we measure cost? - ANSWER✔✔
What is Value? - ANSWER✔✔Value=Benefit
How do we characterize the value of resources? - ANSWER✔✔Use Value & Non-Use Value
Use Value - ANSWER✔✔Attributes somehow get used. Extractive and non-extractive
Page 1/2