ECONOMICS UNIT 5 REVIEW

2. intangible duties that people perform for pay
5. the change in total benefit that results from an action
7. examines how consumers decide what to buy
10. deciding how much more or less to do, a small step that makes a big difference in an action being taken
13. the elements that producers use to create goods and services (also called factors of production)
14. a unit used to measure utility in economics
15. tangible items that companies or individuals produce for consumption
17. the change in total cost that results from an action
18. occurs when the average total cost per item decreases as the number of units produced increases
19. the maximum production an economy can have, given its production resources

1. things found in nature that people use to manufacture goods (examples: petroleum, maple syrup, mineral deposits, trees)
3. an alternative to the item that the consumer would otherwise buy
4. incentive a benefit that motivates action
6. actions by producers or governments that often discourage purchases
8. examples of this include labor and creativity
9. how much of one product a consumer is willing to give up in exchange for another product to maintain the same level of satisfaction
11. benefit analysis making a list/ranking the costs and benefits of taking a particular step before you take it
12. when a company's average total cost of production decreases as it produces more related products
16. in economics this usually refers to satisfaction