chapter 1 section 2 vocab Flashcards
1
Q
incentives
A
benefits to encourage people to act certain ways
2
Q
utility
A
benefits or satisfaction gained from using a good or service
3
Q
trade-offs
A
something you give up for something else
4
Q
opportunity cost
A
the value of the next best thing
5
Q
cost benefit analysis
A
examination of cost, expected benefits of choices
6
Q
marginal cost
A
additional cost of using one more unit of a good or service
7
Q
marginal benefit
A
additional benefit of using one more unit of a good or service
