Chapter 18 notes economics

In a ______ system, private citizens own most, if not all, means of production

Capitalist

What occurs whenever we do not have enough recources to produce all things we would like?

Scarcity

______ costs are expenses that increase as production grows

Variable

Which of the following is NOT one of the choices a society has to face regarding its recourses? a. What to produce B. For Whom c. what d. When

When to produce

Societys choice of WHAT to produce might involve deciding?

Whether to improve roads or build schools

A ________ system requires you to compare the marginal cost and the marginal benefits of a decision

cost benefit analysis

Economics is the science off _______?

decision making

Economists use ______ to test solutions to questions for which there are no obvious or easy answers

economic models

all activity that together affects making, selling, and using goods and services

economics

the study of how we make decisions in a world where recourses are limited

economics

______ costs remain the same regardless the number of units produced

fixed

system allowing businesses to operate with little government interference

free enterprise

_____ are rewards offered to get people to take certain economic actions

incentives

The added cost of producing one additional unit is the ________ cost

marginal

_______ revenue is the change in total revenue that results from selling one more unit of output

marginal

additional benefits associated with an action

marginal benefits

economic climate in which most decisions are made by individuals looking out for themselves

market economy

simplified representations of the real world

models

things that are required for survival, such as food, water, clothing, and shelter

needs

The ______ cost is what you cannot buy or do when choosing to do one thing rather than another

opportunity

A _______ is choosing the alternative that has the greatest value from among comparable- quality products

rational choice

Variable costs + fixed costs =

total costs

exchanging one things for another

trade-off

costs that increases or decreases according to the number of products produced

variable costs

items that make life easier and more enjoyable

wants