Economics Vocab Quiz 2/27/25

This type of unemployment could happen to you if you own a crass cutting business.

• Cyclical

• Structural

• Seasonal

• Frictional

______ is an economic concept that refers to the value of the next best alternative that is forgone when a decision is made to allocate resources, time, or effort to a particular option.

• Marginal Benefit

• Fixed cost
• Marginal utility
• Opportunity Cost

CPI measures

• Taxes

• Marginal Cost

• Marginal Analysis

• Inflation

What is Marginal Cost?

• Marginal cost is the cost of producing one additional unit of a product.
• Marginal cost is the total cost of production for all units.
• Marginal cost refers to the average cost of producing multiple units.
• Marginal cost is the fixed cost incurred regardless of production level.

What is Marginal Benefit?

• Marginal Benefit is the average benefit received from consuming multiple units of a good or service.
• Marginal Benefit refers to the cost incurred from consuming one more unit of a good or service.
• Marginal Benefit is the total benefit received from all units of a good or service.
• Marginal Benefit is the additional benefit received from consuming one more unit of a good or service.

INCENTIVE is defined as.......

• A financial reward for completing tasks.
• A random chance event that affects outcomes.
• A motivating factor that encourages specific actions or behaviors.
• A penalty for failing to meet expectations.

What are the 3 basic Economic Questions?

• What to produce, How to produce, For whom

• Where to produce, When to produce, Why to produce

What is a Market Economy?

• A market economy is an economic system where all transactions are conducted through barter.
• A market economy is an economic system driven by supply and demand, where prices are determined in a free market.

• A market economy is controlled by the government to ensure equal distribution of resources.
• A market economy relies solely on government regulations to set prices and wages.

_______is the basic condition that exists when unlimited wants by society exceed limited productive resources.

• Scarcity
• Wealth
• Surplus
• Abundance

The USA is considered to be a Mixed Economy, but we lean toward the _______ side.

• Market

• Command