C1S2 - Economic Choice Today: Opportunity Cost

Benefits offered to encourage people to act in certain ways are

• incentives

• motives

• utilities

• wants

The benefit or satisfaction gained from the use of a good or service is called a(n)

• cost

• incentive

• utility

• desire

The alternative you give up when you make an economic choice is a(n)

• compromise

• option

• trade-off

• utility

A cost-benefit analysis is often organized by using a(n)

• decision-making graph

• decision-making grid

• incentive grid

• incentive graph

The value of what you give up by choosing one alternative over another is called

• marginal benefit

• marginal cost

• opportunity benefit

• opportunity cost

What is the difference between marginal cost and marginal benefit?

Marginal cost ​ (a)  

Marginal benefit ​​ (b)  

• cost of using one more unit of a good or service
• the benefit or satisfaction received from using on
• extra cost
• total cost of production
• average benefit from all units
• fixed cost of a service