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1-2 Vocabulary jw

methods used to encourage people to take certain actions. Incentive
The benefit or satisfaction received from using a good or service. Utility
Means to make decisions according to the best combination of costs and benefits. economize
The alternative people give up when they make choices. Trade-off
The value of something that is given up to get something else that is wanted. Opportunity Cost
An approach that weighs the benefits of an action against its costs. Cost-benefit analysis
The additional cost of using one more unit of a product. Marginal Cost
The additional satisfaction from using one more unit of a product. Marginal Benefit
Created by: joannw15

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