Economics 1
The condition of limited resources and unlimited wants is known as
Economists use __________ to weigh the pros and cons of different choices.
cost-benefit analysis
A(n) __________ incentive provides noncash motivation, like praise or personal satisfaction.
nonmonetary
The term __________ means there’s no such thing as a free lunch.
TINSTAAFL
Studying for one more hour improves your grade, but cuts into your sleep. This is an example of:
marginal-decision making
A(n) __________ is something that encourages or motivates a person to act.
incentive
__________ is the ability of a good or service to satisfy wants.
Utility
Scarcity forces people to make decisions because (finish the sentence).
resources are limited and not all wants can be satisfied
A rational decision-maker will take an action only if the marginal benefit is (finish the sentence).
greater than or equal to the marginal cost
Comparing costs, benefits, and possible outcomes of a public policy that limits plastic use is an example of:
economic analysis
The value of what you give up when you choose one option over another.
opportunity cost
a free dessert coupon
positive incentive
profit motive
getting praised by your teacher for helping a classmate
nonmonetary incentive
The maximum output of two goods when resources are used efficiently
production-possibilities curve (PPC)
The __________ shows the trade-offs in production choices.
production possibilities curve (PPC)
diminishing returns
The extra cost of doing one more of something.
marginal cost
marginal benefit
This shifts outward when a nation's technology and education improves.
PPC
A city adds a new traffic fine that reduces accidents but lowers business revenue nearby. This is an example of.
unintended consequences
Something that motivates us to perform a specific action.
incentive
When you give up something to get something else.
trade-off
A cost that has already been spent and can't be recovered
sunk cost
This influences just about everything we do and don’t do. It can be both positive and negative.
incentives