Economics 1.1 and 1.2

3. – The satisfaction or benefit a person receives from consuming a good or service.
5. – The study of economic behavior and decision-making of individuals, households, and businesses.
6. Benefit – The additional benefit gained from consuming or producing one more unit of something.
9. – The study of the economy as a whole, including issues like unemployment, inflation, and economic growth.
10. – The fundamental economic problem that exists because resources are limited while human wants are unlimited.
11. of Diminishing Marginal Utility – The principle that as a person consumes more of a good, the additional satisfaction from each extra unit decreases.
12. Analysis – A decision-making tool where costs and benefits are compared to determine whether an action is worthwhile.

1. Cost – The value of the next best alternative that is given up when a choice is made.
2. – A decision made between two or more alternatives.
4. – Rewards or penalties that influence people’s behavior and decisions.
6. Cost – The additional cost of producing or consuming one more unit of something.
7. – The study of how individuals, businesses, and governments make choices about how to use scarce resources to satisfy unlimited wants.
8. Science – A field of study that examines human behavior and society (including economics, history, psychology, sociology, etc.).
13. at the Margin (Marginal Analysis) – The process of deciding how much more or less to do of something by comparing additional costs and benefits.
14. – Giving up one thing in order to get something else.