EPF Basic Economics Concepts: Unit 2 Vocabulary

Describes the LIMITED SUPPLY of labor, land and raw materials available

• PACED

• SMART

• scarcity

• marshmallow

The next (second) best alternative you lose out on whenever you make a decision

• opportunity cost

• trade off

• scarcity

• SMART

All the choices that you lose when you make a decision (the benefits you won't receive)

• scarcity

• opportunity cost

• trade-offs

• marginal cost

When you make a decision and something bad happens that you didn't want, this is called...

• perverse unintended consequences

• windfall

• scarcity

• economics

When you make a decision and something wonderful you did not intend happens this is called...

• perverse unintended consequences

• windfall

• choice

• PACED

The additional cost of producing or consuming ONE more thing

• windfall

• marginal benefit

• marginal cost

• scarcity

The additional benefit received from producing or consuming ONE more unit of something

• scarcity

• marginal benefit

• marginal cost

• I don't understand.

The ability of a good or service to satisfy a need

• utility

• loss

• debt

• credit

The law of ______ says with each additional unit, the marginal utility will decrease until there is no benefit.

• utility

• marginal utility

• scarcity

The study of how society makes choices about how to use scarce resources to satisfy wants and needs.

• psychology

• statistics

• economics

• personal finance