Economics Unit Review

Define Opportunity Cost:

• Opportunity cost is the cost of the next best alternative that is given up when making a choice.
• Opportunity cost is the total cost of all alternatives considered.
• Opportunity cost refers to the monetary value of a decision made.
• Opportunity cost is the benefit received from the best alternative chosen.

Define trade-off in relation to economics:

• A trade-off is the increase in production of one good without affecting others.
• A trade-off refers to the total amount of resources available in an economy.
• A trade-off is the ability to produce unlimited goods and services.
• A trade-off in economics is the sacrifice of one good or service for another due to limited resources.

Define marginal cost:

• Marginal cost is the total cost of production for all units.
• Marginal cost is the fixed cost incurred regardless of production levels.
• Marginal cost is the cost of producing one more unit of a good or service.
• Marginal cost refers to the average cost of producing multiple units.

Marginal Benefit:

• The additional satisfaction gained from consuming one more unit of a good or service.
• The decrease in satisfaction from consuming less of a good or service.
• The average satisfaction from all units consumed.
• The total cost of consuming a good or service.

Define Need:

• A temporary wish or desire.
• A luxury item that is desired.
• A fundamental requirement or necessity.
• An optional choice or preference.

Define want:

• A want is a desire for something that is not necessary for survival.
• A want is a basic need for survival.
• A want is something that is always necessary.
• A want is a requirement for happiness.

Define goods:

• Goods are tangible products that can be bought or sold.
• Goods are items that are exclusively given away for free.
• Goods refer to digital content only.
• Goods are intangible services that cannot be sold.

Define services:

• Services are intangible activities or benefits provided to meet needs.
• Services are always free of charge.
• Services are only provided by government agencies.
• Services are physical goods sold to customers.

Define scarcity:

• Scarcity is the condition where resources are limited in relation to wants.
• Scarcity is the abundance of resources available to meet wants.
• Scarcity refers to the situation where all resources are infinite.
• Scarcity is the ability to satisfy all human desires without limitations.

Define economics:

• Economics focuses solely on financial markets.
• Economics is the study of resource allocation and decision-making in the face of scarcity.
• Economics is the analysis of historical events.
• Economics is the study of animal behavior.