Key Terms pg 8

Question 1

trade-off

Answer 1

an alternative that we sacrifice when we make a decision

Question 2

guns or butter

Answer 2

a phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods

Question 3

opportunity cost

Answer 3

the most desirable alternative given up as the result of a decision

Question 4

thinking at the margin

Answer 4

deciding whether to do or use one additional unit of some resource