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K. Lerchie's Midterm Vocabulary Continued

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Economics Terms
Definitions
Fixed Costs   the costs in making a product that you can't change  
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Variable Costs   the costs in making a product that can change  
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Total Costs   fixed costs + variable costs  
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Average Costs   the average cost of a product  
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Marginal Costs   how much it would cost to make one more of the product  
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Socialism   the government taxes people heavily, but pays for public transportation, health care, education, etc.  
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Communism   from each according to his abilities to each according to his needs  
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Democratic Socialism   when people vote to raise taxes so that the government pays for more needs  
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Communist Manifesto   the bible of communism, written by Karl Marx  
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Proletariat   working-class people  
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