Match each term with the correct definition.

• Economics

• Opportunity cost

• Marginal analysis

• Utility

e. The next-best thing that must be forgone in order to produce one more unit of a given product

f. The pleasure, happiness, or satisfaction obtained from consuming a good or service

g. The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity

h. Making choices based on comparing marginal benefits with marginal costs

Economics is a subject of social science that studies the economic decisions of individuals, institutions, and societies with limited resource availability. It studies the behavior of different economic agents while taking any economic decision. It focuses on the reasons behind the choices made by society under different economic constraints.

It is defined as the cost incurred by the decision-maker on a next-best forgone alternative. Opportunity cost is the quantity of sacrificed goods to attain one unit of desirable goods.

Marginal cost is the cost incurred in producing one more unit, and marginal benefit is the benefit associated with it. Marginal analysis is the comparison of marginal benefit and marginal cost during an economic decision. The comparison is made to determine the equilibrium position of resource allocation for production.

The utility is defined as the degree of satisfaction/happiness or pleasure experienced by a consumer after consuming a commodity. The combined satisfaction after consuming any goods or services is the total utility gained from it. Marginal utility is the satisfaction gained by the consumer.