OCS Economics - Module 1 Vocab

the cost added by producing one additional unit of a product or service

• scarcity

• Marginal cost

• factors of production

• absolute advantage

The limitation of a good

• marginal cost

• scarcity

• law of increasing cost

• comparitive advantage

What is used to make goods or provide a service

• free market/capitalism

• ingredients

• marginal cost

• factors of production

economic principle that states that when a supplier increases the production of a good, the opportunity cost of producing additional goods also increases.

• opportunity cost

• supply and demand

• Law of Increasing cost

• marginal cost

The extent to which we give something up.

• socialism

• Free market/capitalism

• opportunity cost

• command economy

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

• scarcity

• microeconomics

• comparative advantage

• trade barriers

Businesses and individuals make all the decisions what to make, how to make it and how to distribute goods and services.

• subsidies

• socialism

• free market/capitalism

• command economy

Government payments to compensate for lower prices

• economics

• supply and demand

• macroeconomics

• subsidies

Businesses and households

• private sector

• public sector

• subsidies

• consumers

motivation

• subsidies

• command economy

• economics

• incentives