Try It
Vocabulary Review
Definitions:
- marginal benefit
- marginal analysis
- goods
- choice
- marginal costs
- scarcity
- services
Terms:
- A decision-making tool for comparing the additional or marginal benefits of a course of action to the additional or marginal costs
- The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use
- A decision made or course of action taken when faced with a set of alternatives
- Activities performed by people, firms or government agencies to satisfy economic wants
- The increase in a producer's total cost when it increases its output by one unit
- The additional gain from consuming or producing one more unit of a good or service; it can be measured in dollars or satisfaction
- Tangible objects that satisfy economic wants
Answers:
- Goods
Answer: Tangible objects that satisfy economic wants
- Services
Answer: Activities performed by people, firms or government agencies to satisfy economic wants
- Scarcity
Answer: The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use
- Choice
Answer: A decision made or course of action taken when faced with a set of alternatives
- Marginal Benefit
Answer: The additional gain from consuming or producing one more unit of a good or service; it can be measured in dollars or satisfaction
- Marginal analysis
Answer: A decision-making tool for comparing the additional or marginal benefits of a course of action to the additional or marginal costs
- Marginal Costs
Answer: The increase in a producer's total cost when it increases its output by one unit