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Vocabulary Review

Definitions:

  1. marginal benefit
  2. marginal analysis
  3. goods
  4. choice
  5. marginal costs
  6. scarcity
  7. 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:

  1. Goods

    Answer: Tangible objects that satisfy economic wants

  2. Services

    Answer: Activities performed by people, firms or government agencies to satisfy economic wants

  3. 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

  4. Choice

    Answer: A decision made or course of action taken when faced with a set of alternatives

  5. 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

  6. 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

  7. Marginal Costs

    Answer: The increase in a producer's total cost when it increases its output by one unit