| A | B |
|---|
| Utility | An abstract measure of the satisfaction consumers derive from consuming goods and services. |
| Consumers | People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services. |
| Costs | An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something. |
| Benefit | Monetary or non-monetary gain received because of an action taken or a decision made. |
| Trade-off | The giving up of one benefit or advantage in order to gain another regarded as more favorable. |
| Choice | Decision made or course of action taken when faced with a set of alternatives. |
| Decision Making | Reaching a conclusion after considering alternatives and their results. |
| Firms | Economic units that demand productive resources from households and supply goods and services to households and government agencies. |
| Assumptions | Beliefs or statements presupposed to be true. |
| Marginal Cost | The increase in a producer's total cost when it increases its output by one unit. |
| Marginal Benefit | The additional gain from consuming or producing one more unit of a good or service; can be measured in dollars or satisfaction. |
| Consume | To buy and use a good or service. |
