Civics- Chapter 16 Lesson 2

Giving up one alternative good or service for another is called

• an opportunity lost.

• a scarcity.

• a trade-off.

• a want.

Which of these is an example of a fixed cost?

• money spent on supplies

• electric bill

• employee wages

• rent

The additional income received from each increase of one unit in sales is called the

• marginal benefit.

• marginal profit.

• marginal revenue.

• total revenue.

Giving up one alternative good or service for another is called

• an opportunity lost.

• a scarcity.

• a trade-off.

• a want.

What do businesses utilize when making decisions among various projects?

• benefit-cost analysis

• optional analysis

• profit-margin analysis

• trade-off analysis

The cost of the next-best use of your money or time, when you choose to do one thing over another is opportunity cost

• true

• false

Expenses that do not change no matter how much a business produces are called fixed costs

• true

• false

Expenses that change depending on how much a business produces are called variable costs

• true

• false

The increase in expenses caused by producing an additional unit of something is called revenue

• true

• false

The money a business receives from selling its goods or services is called revenue

• true

• false