Economics Unit 1 Review

Front

Scarcity

Back

The difference between unlimited wants and limited economic resources.

Front

Marginal Benefit

Back

The additional benefit to a consumer from consuming one more unit of a good or service.

Front

Market Economy

Back

An economic system where most choices about production and consumption are made by many individuals and firms.

Front

Mixed Economy

Back

An economic system combining private and public enterprise.

Front

Factors of Production

Back

The resources used in the production of goods and services: land, labor, capital, and entrepreneurship.

Front

Opportunity Cost

Back

The value of the next best alternative that is forgone when making a choice.

Front

Total Cost

Back

The total expense incurred in the production of goods or services, including both fixed and variable costs.

Front

Total Benefit

Back

The total gain received from consuming a good or service.

Front

Command Economy

Back

An economic system where the government makes all decisions about the production and consumption of goods and services.

Front

Traditional Economy

Back

An economic system that relies on customs, history, and time-honored beliefs.