Week10 Vocab

Question 1

Cost-benefit analysis

Answer 1

Economic model that compares the marginal cost and marginal benefits of a decision

Question 2

Marginal cost

Answer 2

The additional or extra opportunity cost associated with an action

Question 3

Opportunity cost

Answer 3

The cost of the next best alternative use of time and money when choosing to do one thing rather than another

Question 4

Revenue

Answer 4

The income that a government collects for public use

Question 5

Fixed cost

Answer 5

A cost unvarying with change in the volume of business

Question 6

Variable cost

Answer 6

A cost that various with a change in the volume of output while remaining uniform on a per-unit bases as cost of labor

Question 7

Economics

Answer 7

The study of how individuals and nations make choices about ways to use scarce resources to fulfill their need and wants

Question 8

Resources

Answer 8

The money, people and materials available to accomplish a community’s goals (wealth)

Question 9

Scarcity

Answer 9

Not having enough resources to produce all of the things we would like to have

Question 10

Trade-off

Answer 10

The alternative you face if you decide to do one thing rather than another