Final Review New

Front

The extra added utility or positive outcome by adding one additional unit, or by doing a little more of something.

Back

Marginal Benefit

Front

Additional cost associated by producing one additional unit of product.

Back

Marginal Costs

Front

The act of giving up one benefit in order to gain another, greater benefit:

Back

Trade-Off

Front

The value of the next best alternative (what you lose when you choose)

Back

Opportunity cost

Front

In Cost/Benefit Analysis or rational thinking, when does adding an additional unit pay off?

Back

Marginal benefits equal or exceed marginal costs.

Front

The hammer used to build a piece of furniture would be classified as

Back

Physical Capital

Front

The trees used to build a piece of furniture would be classified as

Back

Land

Front

The carpenter's skill and Knowledge used to build a piece of furniture would be classified as

Back

Human capital

Front

The person who started the furniture building business would represent

Back

Entrepreneurship

Front

Which of the following could cause a country's production possibilities curve to shift inward to the left? Funding for education opportunities, Investment in physical capital, An increase in productivity of workers, There is a decrease in available resources

Back

There is a decrease in available resources