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Ch1Sc2
Vocabulary Flashcards
Term | Definition |
---|---|
incentives | benefit offered to encourage people to act in a certain way |
utility | benefit or satisfaction gained from using a good or service |
economize | to make decisions according what is believed to be the best combination of costs and benefits |
trade-off | alternative when someone gives up when making an economic choice |
opportunity cost | value of something that is given up by choosing one alternative over another |
cost-benefit analysis | practice of examining the costs and the expected benefits of a choice as an aid to choice making |
marginal cost | additional cost of producing or using one more unit of a good or service |
marginal benefit | benefit or satisfaction gained from using one or more unit if a good or service |