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18 Cards in this Set
- Front
- Back
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Marginal Cost |
The additional or extra opportunity cost associated with an action |
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Trade off |
The alternative you face if you decide to do one thing rather than another |
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Opportunity Cost |
The value of an alternative good or service that a company or country has chosen not to produce in order to specialize in something else |
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Standard Of Living |
The material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied |
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Fixed Cost |
Costs, or expenses, that are the same no matter how many units of a good are produced |
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Variable Cost |
Expenses that change with the number of products produced |
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Total Cost |
When you add fixed costs to variable costs |
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Wealth of Nations |
Adam Smith's classic 1776 statement of the virtues of a free market economy |
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Substitute Good |
A competing product that consumers can use in place of another |
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Division Of Labor |
The breaking down of jobs into separate, smaller tasks to be performed individually |
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Specialization |
When people, business, regions, and/or nations concentrate on good and services that they can produce better than anyone else |
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Goods |
Products that are manufactured and that consumers can buy and own |
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Services |
Work that does not produce an actual product, but which consumers can buy |
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Gross Domestic Product (GDP) |
Total value of goods and services produced by a nation |
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Mass Production |
The rapid production by machine of large numbers of identical objects |
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Marketing |
The process of making goods and services available to consumers and convincing them to buy the product or service |
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Consumer |
People who buy products |
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Producer |
People who make products |
