Econ Terms Chp. 18

Theory that explains human economic behavior

expenses that change with the number of items produced

Things that we would like to have, that make our lives more comfortable

The study of how we make decisions in a world in where resources are limited

cost of the next best use of your time or money when you choose to do one thing over another

The things used in making goods and providing services

Deals with the economy as a whole and decision making by large units such as a government

Additional satisfaction or benefit received when one more unit is produced

A country's way of producing the things its people want and need 

The branch of economics that studies behavior & decision making in small units 

Another word for calculating or figuring cost

Additional cost of producing one more unit of output

Comparing the marginal benefit against the marginal cost reveals the best decision

costs or expenses that are the same no matter how many units of a good are produced

adding fixed costs to variable costs equals 

The alternative you face if you decide to do one thing rather than the other

Things that are required for survival like clothing, food, and shelter 

Forces people to make choices among alternatives bc there are not enough resources to produce