Scarcity and Opportunity Cost

4. What is limited?

Amounts of resources to meet their demands.

9. What two things does each economic choice involve?

Benefit and OPPORTUNITY COST

10. What is meant by opportunity cost?

The missed opportunity or what you gave up for making the choice or purchase.

11.. What are some benefits of a college education and what are some of the opportunity costs of a college education?

Benefit: Earned college degree--required for many good jobs Will make more money over lifetime More valuable to employers for complicated jobs Type of job more interesting One's horizons (mindset) widened Opportunity Costs: Missed: Earning money from a job Time with friends Getting job experience and skills Spent $40,000.

6. Because of the scarcity of resources, what do we need to make?

Choices

5. Why can't all of people's needs and wants be satisfied?

Due to the scarcity of resources

1. What is the main economic problem?

Scarcity

3. What is unlimited or endless?

Wants and Needs

8. What kinds of choices do businesses need to make?

What resources to use and what products to produce?

7. What kinds of choices do consumers need to make?

What to buy, trade, or use

2. What does scarcity mean?

When things are in short supply or NOT enough of something that people want and need