Robinson Crusoe economy
A Robinson Crusoe economy is a simple framework used to study some fundamental issues in economics. It assumes an economy with one consumer, one producer and two goods. The title "Robinson Crusoe" is ...
Robinson Crusoe economy - Wikipedia
Consumer choice
In microeconomics, the theory of consumer choice relates preferences (for the consumption of both goods and services) to consumption expenditures; ultimately, this relationship between preferences and...
Production-possibility frontier
In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph representing product...
Marginal rate of transformation
In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph representing product...
Marginal rate of transformation - Wikipedia
Comparative advantage
The theory of comparative advantage is an economic theory about the potential gains from trade for individuals, firms, or nations that arise from differences in their factor endowments or technologica...
Pareto efficiency
Pareto efficiency, or Pareto optimality, is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off. The ter...
Pareto efficiency - Wikipedia
Productive efficiency
Productive efficiency occurs when the economy is using all of its resources efficiently. The concept is illustrated on a production possibility frontier (PPF) where all points on the curve are points ...
Productive efficiency - Wikipedia
Backward bending supply curve of labour
In economics, a backward-bending supply curve of labour or backward-bending labour supply curve is a graphical device showing a situation in which, as "real" or inflation-corrected wages increase beyo...
Backward bending supply curve of labour - Wikipedia
Hicksian demand
In microeconomics, a consumer's Hicksian demand correspondence is the demand of a consumer over a bundle of goods that minimizes their expenditure while delivering a fixed level of utility. If the cor...
Slutsky equation
The Slutsky equation (or Slutsky identity) in economics, named after Eugen Slutsky (1880–1948), relates changes in Marshallian (uncompensated) demand to changes in Hicksian (compensated) demand, which...
Income effect
In economics and particularly in consumer choice theory, the income-consumption curve is a curve in a graph in which the quantities of two goods are plotted on the two axes; the curve is the locus of ...
Income effect - Wikipedia
Opportunity cost
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternative...
Substitute good
In consumer theory, substitute goods are products that a consumer perceives as similar or comparable, so that having more of one product makes him want less of the other product. Formally, X and Y are...
Substitute good - Wikipedia