Economics Vocab Unit 1

1. costs Costs that do change depending on production levels, like materials
3. The study of how people make choices about using limited resources to meet their wants and needs.
4. The amount of a product that consumers are willing and able to buy at different prices.
7. The satisfaction received from consuming goods and services.
8. The amount of a product that producers are willing and able to make available at different prices.
9. Carefully using resources so as not to waste anything.
11. The additional benefit gained from consuming one more unit of a product.
12. Comparing the costs and benefits of an economic decision.
13. What you give up when you choose one thing over another. For example, if you choose to play video games, the opportunity cost is not doing homework.
15. When there is a limited amount of something. For example, there is a scarcity of time in a day.

2. Something that motivates a person to do something. For example, a store discount incentivizes people to shop there.
5. The additional cost of producing one more unit of a product.
6. Costs that do not change depending on production levels, like rent for a factory.
10. When supply and demand are balanced. The market price is settled at the point where the quantities demanded and supplied are equal.
14. Giving up one thing for something else that is seen as more valuable. There are always trade offs when making economic choices.