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What is the act of a company concentrating on just a few goods or services?

What is the act of a company concentrating on just a few goods or services?

Lessons 5.1-5.6

Question Answer
The act of concentrating on a limited number of goods or activities is called _____________________________ specialization
The struggle among producers for consumers’ money is called _______________________ competition
The general increase in prices over time is called _______________ inflation

When you make a choice all the options that you have are called?

Opportunity cost is what you give up (the benefits of the next best alternative) when you make a choice.

What encourages people to make certain choices?

Incentives encourage people to make certain choices and utility is the benefit or satisfaction received from using a good or service.

Are earned by selling goods and services?

1. Revenues are: a. earned by selling goods or services to customers.

What is it called when you make an economic choice?

What describes the value of what you decide to give up when you make an economic choice? opportunity cost. You just studied 18 terms! 1/18.

What does it mean to think at the margin?

It means to think about your next step forward. The word “marginal” means “additional.” The first glass of lemonade on a hot day quenches your thirst, but the next glass, maybe not so much. If you think at the margin, you are thinking about what the next or additional action means for you.

What must be given up to obtain an item is called?

opportunity cost. The opportunity cost of any item is whatever must be given up to obtain it.

What a person gives up by making a choice?

Opportunity cost: The value of the second-best alternative that a person gives up when making one choice instead of another. Scarcity: An economic condition created by an excess of human wants over the resources necessary to satisfy them; an inability to satisfy all of everyone’s wants.

What is the alternative people give up when they make choices?

All individuals and groups of people make decisions that involve trade-offs. The most desirable alternative given up as a result of a decision is known as opportunity cost. Trade-offs are all the alternatives that we give up whenever we choose one course of action over others.

What is the money earned by selling goods and services?

Revenue, often referred to as sales or the top line, is the money received from normal business operations. Operating income is revenue (from the sale of goods or services) less operating expenses.

Is accounts receivable a revenue?

As a result, accounts receivable wouldn’t be considered revenue. However, under the accrual basis of accounting, revenue is understood to be cash that comes into your business after a sale has occurred, which makes accounts receivable revenue.

What are the steps of making an economic decision?

The steps are: 1) Define the problem 2) Identify possible alternatives 3) Develop criteria and a ranking system 4) Evaluate alternatives against the criteria 5) Make a decision.