Unit 1: Basic Economics

Needs, wants

Necessities, demands

Supply, demand

Wants, needs

Surplus, decrease

Surplus, increase

Shortage, decrease

Shortage, increase

Surplus, decrease

Surplus, increase

Shortage, decrease

Shortage, increase

a. Every decision involves a trade-off, where something is sacrificed.

b. Trade-offs are irrelevant to making decisions.

c. Trade-offs only apply to economic decisions.

d. Trade-offs are only considered in long-term planning.

Investing in a stock that has already lost value.

Deciding to eat a slice of cake instead of eating a salad.

Choosing to buy a new phone instead of saving for a vacation.

Spending $30 on movie tickets for a movie that was not very entertaining.

It is the cost associated with producing one more unit of a good.

It is the additional satisfaction gained from consuming one more unit of a good or service.

It refers to the total satisfaction from all units consumed.

It measures the value of resources that have already been spent.

It focuses on the additional cost incurred from producing one more unit.

It is irrelevant to the decision-making process.

It represents the satisfaction gained from consuming a good.

It measures the total cost of all units produced.

They influence the marginal benefit of a decision.

They are costs that cannot be recovered and do not affect future decisions.

They are always higher than variable costs.

They represent future costs that will be incurred.

A tax refund

A utility bill payment

A business loan

A Social Security benefit