Unit 1 Vocab Quiz

The condition that exists because there are not enough resources to produce everyone's wants.

• Economics

• Scarcity

• Shortage

• Surplus

The study of human behavior under conditions of scarcity.

• Incentives

• Utility

• Economics

• Scarcity

You use this when you weigh the costs and benefits of a choice in your decision making.

• cost-benefit principle

• marginal principle

• interdependence

• law of diminishing marginal utility

With this principle, you weigh the additional benefit against the additional cost of adding an additional unit of a good or service.

• Opportunity Cost

• Interdependence

• Cost-Benefit

• Marginal

You use this principle in your decision making when you consider an external factor.

• Interdependence

• Marginal

• Cost-Benefit

• Opportunity Cost

The study of the broad economy, such as how an economy grows and how growth is maintained.

(a)  

The study of individual decisions and their implications for specific markets.

(a)  

The total satisfaction received from a choice.

• Benefit

• Opportunity Cost

• Utility

• Incentives

Factors that influence a person’s behavior (can be positive or negative).

• Utility

• Incentives

• Cost-benefit

• Scarcity

The true cost of your choice is the next best alternative that you gave up.

• Marginal Principle

• Shortage

• Tradeoff

• Opportunity Cost