Scarcity and Opportunity Costs–Vocabulary Review
Match each term with its definition
1. Scarcity
2. Goods
3. Services
4. Incentive
5. Monetary incentive
6. Non-monetary incentive
7. Opportunity cost
8. Marginal benefit
9. Marginal cost
10. Resource
a. The value of the second-best
alternative, which is given up when
choosing among alternatives
b. An activity performed by a person to
satisfy a consumer’s demand.
c. The condition in which the quantity of
a resource is limited but the wants for
that resource are unlimited.
d. The change in total cost of production
after producing one extra unit.
e. Financial compensation given to
increase productivity or motivation
f. A gesture or reward given to increase
productivity or motivation.
g. An increase in benefit arising from a
unit increase in consumption of goods
or services.
h. Something used to produce a good or
service.
i. A physical item that satisfies a
consumer’s demand.
j. Compensation that does not involve a
financial reward given to increase
productivity or motivation