Notgrass Exploring Economics Unit 5 Questions With 100% Correct Answers.

A cigarette warning label - is an example of a disincentive. A cost-benefit analysis - determines the cost and the benefit of taking a particular step before you take it to determine if the benefit outweighs the cost. A margin is a small step that - makes a big difference in an action being taken. A marginal benefit - is the change in total benefit that results from an action. A marginal rate of substitution - involves how much of one product a consumer is willing to give up in exchange for another product to maintain the same level of satisfaction. An economic incentive - is a benefit that motivates action. Capitalism and socialism - differ in terms of who makes economic decisions. Command economies - try to insure stability while sacrificing the possibility of significant growth. Economic efficiency - is the goal of encouraging the people in an economy to be as productive as possible in making goods and services available. Economic equity - is the goal of having people in a society share goods and services as equally as possible. Goods - are tangible items that companies or individuals produce for consumption.Government policies that place limitations on business activity - limit the choices that producers and consumers have in order to meet other goals that people in government value. In terms of economics, capital - means materials used to produce goods. Loans that were too large for people to pay back - helped cause the Great Recession. Opportunity cost - is the greatest benefit that a producer gives up when he makes a choice. Production resources - are the elements that producers use to create goods and services. Public choice theory - emphasizes the role of self-interest in decision-making. Services - are intangible duties that people perform for pay. The production possibilities curve - is the maximum production that an economy can have, given its production resources. The promise of economic security - means that you give up a degree of economic freedom.