WorksheetsEPF.1a Basic Economic Concepts Vocabulary
Total questions: 10
Worksheet time: 5mins
Trade-offs
The act of gaining multiple benefits simultaneously.
The giving up of one benefit or advantage in order to gain another regarded as more favorable.
A strategy to avoid making decisions.
The process of maximizing all available resources.
Resources
Things that are in unlimited supply.
Things that are in limited supply and may include personal resources (financial, skill, time) or productive resources (capital resources, human resources, natural resources, and entrepreneurship).
Things that are only financial in nature.
Things that are only related to human skills.
marginal cost
The cost incurred by consuming one more of something
The total cost of production divided by the number of units produced
The fixed cost associated with producing a good
The variable cost that changes with the level of output
Opportunity Cost
Cost of the next best alternative use of money, time, or resources when one choice is made rather than another.
The total cost incurred when making a decision.
The benefits received from the best alternative that is not chosen.
The amount of money spent on a particular choice.
Decision
A choice made after evaluating different options and their outcomes.
A random selection made without any thought.
An opinion formed without any evidence.
A statement of fact that does not require any choice.
Choice
A. Scarcity
B. Abundance
C. Surplus
D. Affluence
marginal benefit
The total cost of producing a good or service.
The additional satisfaction gained when consuming an additional unit of the good or service.
The decrease in satisfaction from consuming less of a good or service.
The average satisfaction derived from all units consumed.
Wants
Desires that can be satisfied by consuming a good or service.
Basic needs for survival such as food and shelter.
Emotional needs that cannot be fulfilled by material goods.
Long-term goals that require planning and effort.
PACED Decision-Making Process
A decision-making process that includes stating the problem, listing alternatives, identifying criteria, evaluating alternatives, and making a decision.
A method for making decisions based on intuition and gut feelings.
A process that focuses solely on the financial aspects of decision-making.
A strategy that encourages group discussions without a structured approach.
Scarcity
A situation where resources are abundant and wants are limited.
A situation in which unlimited wants exceed the limited resources available to fulfill those wants.
A condition where all needs are met without any limitations.
A scenario where resources are evenly distributed among all individuals.
