12 Principles of Economics Vocabulary

What is the decision

by an individual of what to do, which

necessarily involves a decision of

what not to do, called in economics?

• Sunk cost
• Economic surplus
• Marginal benefit
• Individual Choice

Anything that can be

used to produce something else is called?

• resource
• product
• material
• opportunity

When not enough

of the resources are available to

satisfy all the various ways a society

wants to use them, we call this condition?

• abundance
• surplus
• plenty
• scarcity

It is the real cost of an item. It's what you must give up in order to get it.

• Marginal cost
• Opportunity cost
• Sunk cost
• Fixed cost

When you compare the costs with the benefits of doing something, you make a what?

• financial assessment
• trade-off

• trading offer

• benefit evaluation

Define a marginal decision in economics?

• A marginal decision is the final choice made after all options are considered.
• A decision about whether to do a

  bit more or a bit less of an activity

• A marginal decision refers to the total cost of an activity without considering changes.
• A marginal decision is the choice to maintain the current level of activity regardless of benefits.

The study of marginal decisions, or a marginal decision, is called?

• Statistical analysis
• Marginal assessment

• Cost-benefit analysis
• Marginal analysis

In economics, anything that offers

rewards to people who change their

behavior is called?

• an incentive

• taxes
• a subsidy

• fines

In a market economy, individuals provide goods and services to others and receive goods and services in return. This is called?

• Barter
• Trade
• Commerce
• Exchange

People can get more of what they want through trade than they could if they tried to be self-sufficient. This is referred to as?

• Absolute advantage
• gains from trade

• trade loss

• Trade surplus