Loans that were too large for people to pay back - helped cause the Great Recession.
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.
Goods - are tangible items that companies or individuals produce for consumption.
Services - are intangible duties that people perform for pay.
In terms of economics, capital - means materials used to produce goods.
Opportunity cost - is the greatest benefit that a producer gives up when he makes a
choice.
An economic incentive - is a benefit that motivates 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.
Production resources - are the elements that producers use to create goods and
services.
The production possibilities curve - is the maximum production that an economy can
have, given its production resources.
A cigarette warning label - is an example of a disincentive.
Capitalism and socialism - differ in terms of who makes economic decisions.
Public choice theory - emphasizes the role of self-interest in decision-making.
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.
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