incentives, methods used to encourage people to take certain actions, utility, benefits received from using a good/service, economize, make decisions according to the best combination of costs and benefits, trade-off, All alternatives given up, opportunity cost, most desireable trade off given up, cost-benefit analysis, weighing the benefits against the costs, marginal cost, additional cost of using one more unit of a product, marginal benefit, additional benefit from using one more unit of a product, guns or butter, military or consumer goods, TNSTAAFL, There is no such thing as a free lunch

Chapter 1-2

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