Economic surplus: the benefit of taking an action minus its costs. Opportunity cost: the value of the next-best alternative that must be foregone in order to undertake an activity Sunk cost: a cost that is beyond recovery at the moment a decision must be made. Average benefit: the total benefit of undertaking an activity divided by the units of the activity. Average cost: the total cost of undertaking an activity divided by the units of …showed first 75 words of 913 total…

…showed last 75 words of 913 total…Zero inflation: when the price level stays roughly constant from year to year. Stable inflation: CPI rises over time, but at a constant rate; i.e., the inflation rate stays roughly constant from year to year. Accelerating inflation: CPI rises over time, but at an increasing rate; i.e., the inflation rate rises from year to year. Capital gains: increases in the value of existing assets. Capital losses: decreases in the value of existing assets.