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Unformatted text preview: Marginal cost-The opportunity cost that arises from a one-unit increase in an activity, The marginal cost of something is what you must give up to get one additional units of it Marginal benefit-The benefit that arises from one unit increase in an activity, the Marginal benefit of something is measured by what you are willing to give up to get one additional unit of it Incentive-A reward or a penaltya carrot or a stickthat encourages or discourages an action Microeconomics-The study of the choices that individuals are businesses make and the way these choices interact and are influenced by governments Macroeconomics-The study of the aggregate (or total) effects on the national economy and the global economy of the choices that individuals, businesses, and governments make Correlation-The tendency for the values of to variables to move in a predictable and related way...
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- Spring '08