Chapter 16 Vocab

Front

Additional opportunity cost for each unit increase in sales

Back

marginal cost

Front

Supply of a good/service is less than demand.

Back

shortage

Front

Economic system where production decisions are based on custom or habit.

Back

traditional economy

Front

Additional income from each unit increase in sales

Back

marginal revenue

Front

Location for buyers and sellers to trade products.

Back

market

Front

Amount of goods producers are willing to sell at various prices.

Back

supply

Front

A person or business that provides goods and services.

Back

producer

Front

Someone who buys a good or service

Back

Consumer

Front

Economic model comparing marginal costs and benefits

Back

Benefit-cost analysis

Front

Desire of individuals/nations met by goods/services.

Back

want