| A | B |
|---|
| ESSENCE | THE MOST IMPORTANT INGREDIENT OR CRUCIAL ELEMENT |
| FREE | NO COST TO ANYONE |
| TANSTAFL | THEIR AIN'T NO SUCH THING AS A FREE LUNCH |
| FINANCES | MATTERS RELATED TO MONEY, EXPENSES, AND SAVINGS |
| COST | WHAT MUST BE GIVEN UP TO PURSUE ONE COURSE OF ACTION OVER ANOTHER |
| OPPORTUNITY COST | THE MOST DESIRABLE ALTERNATIVE THAT IS GIVEN UP AS THE RESULT OF A DECISION |
| MARGINAL ANALYSIS | FIGURING OUT WHAT AND HOW MUCH TO TRADE OFF |
| MARGINAL | THE INCREMENTAL CHANGE IN AN ECONOMIC VARIABLE |
| UTILITY | THE AMOUNT OF SATISFACTION THAT AN ITEM PROVIDES |
| TANGIBLE | CAPABLE OF BEING TOUCHED / AND TREATED AS FACT |
| SUNK COSTS | COSTS THAT HAVE ALREADY BEEN PAID AND THUS SHOULD NOT BE USED IN MAKING FUTURE DECISIONS |
| MARGINAL COSTS | THE ADDITIONAL COST OF PRODUCING OR NOT PRODUCING EACH OPTION |
| PRODUCTION POSSIBILITIES CURVE | A GRAPH THAT SHOWS THE TRADE OFFS BETWEEN TWO COURSES OF ACTION |
| CAPITAL GOODS | GOODS THAT ARE USED TO MAKE OTHER GOODS / SERVICES |
| CONSUMPTION GOODS | GOODS THAT ARE CONSUMED AND NO LONGER HAVE THE SAME UTILITY AFTER BEING USED |
| COSTS | WHAT YOU INCUR WHEN PRODUCING A GOOD OR SERVICE |
| COSTS OF PRODUCTION | MATERIALS, UTILITIES, LABOR TO BUILD |
| ADMINISTRATIVE COSTS | ADVERTISING, SALES, LABOR, LEGAL |
| REVENUE | MONEY COLLECTED WHEN YOU SELL A GOOD OR SERVICE |
| PROFIT | REVENUE MINUS COST |
| ACCOUNTING PROFITS | ACTUAL REAL, HARD DOLLAR PROFITS, REVENUE MINUS EXPLICIT COST |
| ECONOMIC PROFITS | ACCOUNTING PROFITS PLUS OPPORTUNITY COSTS |
| RETURN ON CAPITAL | HOW MUCH PROFIT IS EARNED ON EACH DOLLAR INVESTED |
| PRODUCTIVITY | THE VALUE OF THE AMOUNT OF GOODS AND SERVICES PRODUCED FROM EACH HOUR OF WORK |
| EFFICIENCY | USING SCARCE RESOURCES IN SUCH A WAY AS TO MAXIMIZE THEIR BENEFIT |
| MARGINAL PRODUCT | THE CHANGE IN TOTAL PRODUCT PRODUCED WHEN THE USE OF PARTICULAR RESOURCE INCREASED BY ONE UNIT WITH ALL OTHER RESOURCES REMAINING CONSTANT |
| MARGINAL PRODUCT OF LABOR | THE CHANGE IN OUTPUT FROM HIRING ONE MORE WORKER |
| INCREASING MARGINAL RETURNS | INCREASING OUTPUT PER WORKER |
| DIVISION OF LABOR | SPLITTING PRODUCTION OF A GOOD OR SERVICE INTO IT'S COMPONENT PARTS |
| SPECIALIZATION | FOCUSING A WORKERS EFFORTS ON THE PARTICULAR TASK THEY ARE MOST SKILLED AT |
| DIMINISHING MARGINAL RETURNS | WHEN ADDING MORE WORKERS INCREASED TOTAL OUTPUT BUT AT A DECREASING RATE |
| NEGATIVE MARGINAL RETURNS | WHEN ADDING ONE MORE WORKER ACTUALLY DECREASES OUTPUT |
| LAW OF INCREASING COSTS | THE MORE A COUNTRY SPECIALIZES THE MORE THEY MUST TRADE OFF |
| GROWTH | HAVING MORE RESOURCES BECOME AVAILABLE |
