1. Economic Reasoning Test Review

2. What is any reward or benefit that motivates people to do something

3. Incentive

4. What is a factor or disadvantage that discourages people from doing something?

5. Disincentive

6. What is a tool used to choose among alternatives; weighing the cost of a product or service against the benefit(s) it will provide?

7. Cost/Benefit Analysis or Risk/Reward Relationship

8. What is a decision made or course of action taken when faced with a set of alternatives?

9. Choice

10. What do we need to help make a choice turn out the way we want it to?

11. Information

12. What is it called when you consider the benefits and costs of the choices you make?

13. Economic Way of Thinking

14. Should you consider your priority or goals when making a choice? Yes/No

15. Yes

16. When making a choice, should you determine the most benefit for the least cost? Yes/No

17. Yes

18. What is it called when you give up a litter of one thing in order to get more of something else?

19. Trade-Off

20. What is an economic condition created by an excess of human wants over the resources necessary to satisfy them?

21. Scarcity

22. What is the value of the second-best alternative that a person gives up when making one choice instead of another?

23. Opportunity Cost

24. What does the PACED Decision Model stand for?

25. Problem Alternatives Criteria Evaluate Decision

26. Can the PACED Decision- Making Model help you make better decisions? Yes/No

27. Yes

28. An incentive is a

29. reward

30. A disincentive is a

31. punishment

32. We use disincentives to measure our costs and our benefits. True/False

33. False

34. We use the economic way of thinking to measure our costs and benefits. True/False

35. True

36. What are some examples of limited resources?

37. Time money space

38. What is the problem of having limited resources known as?

39. scarcity

40. Choices have consequences. Yes/No

41. yes

42. What can be described as what you gave up when making a decision?

43. Opportunity Cost

44. When you make a choice, it does not involve a trade-off. True/False

45. False