Economics Unit 1 Practice

Economics

• A Social Science of how wealth is worked with services

• When you switch one thing with another thing to receive a benefit.

• What you give up when making a choice

a firm's opportunity cost reduces when production declines

• Constant Opportunity Cost

• Decreasing Opportunity cost

A Situation of not utilizing machines or resources to the fullest capacity or the production capacity

• Underutilized Economy

• Unattainable Economy

• Constant Opportunity Cost

A Scenario in which the expenses of pursuing a specific opportunity do not evolve, even through the benefits obtained

• Constant Opportunity Cost

• Decreasing Opportunity Cost

• Efficient Economy

Efficient EconomyAn Economic state in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiently.

• Unattainable Economy

• Underutilized Economy

• Efficient Economy

• Constant Opportunity Cost

Negative Utility

• Where you have too much of an item, so consuming more is actually harmful.

• A way to compare the costs and benefits of an intervention, where both are expressed in monetary units.

A way to compare the costs and benefits of an intervention, where both are expressed in monetary units.

• Cost-Benefit Analysis

• Marginal Cost

• Marginal analysis

An Examination of the associated costs and potential benefits of specific business activities of Financial decisions.

• Marginal Cost

• Marginal Analysis

Marginal Cost

• An Examination of the associated costs and potential benefits of specific business activities of Financial decisions.

• The Increase in production costs generated by the production of additional product units.

• A way to compare the costs and benefits of an intervention, where both are expressed in monetary units.

Marginal Benefit

• The State of being useful, profitable, or beneficial

• The Benefit gained from consuming one additional unit of a good or service.

• A Maximum amount a customer is willing to pay for an additional good or service.