| A | B |
|---|
| Marginal Cost | The cost of producing one more of an item |
| Marginal Benefit | The benefit or money made from producing one more of an item. |
| Fixed Costs | Expenses that are the same no matter how much or how little you produce. |
| Variable Costs | Expenses that change when the number of items produced changes. |
| Total Costs | Fixed costs plus variable costs equal total costs |
| Goods | Goods are products that we use to satisfy our wants and needs. |
| Services | Services are work performed by a person for someone else. |
| Laissez-Faire economics | The government does not regulate the economy or is “hands-off.” |
