Scarcity and Opportunity Cost
What kinds of choices do consumers need to make?
what to buy trade or use
What two things does each economic choice involve?
Benefit and Opportunity Cost
What is meant by opportunity cost?
The missed opportunity or what you gave up for making the choice or purchase.
What are some benefits of a college education and what are some of the opportunity costs of a college education?
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.
What is limited?
Our Resources
What is unlimited or endless?
Our needs and wants a
Because of the scarcity of resources, what do we need to make?
People have to make of difficult decisons
Why can't all of people's needs and wants be satisfied?
Resources are limited
What is the main economic problem?
Scarcity
What does scarcity mean?
The inability to satisfy all wants at the same time - limited resources
What kinds of choices do businesses need to make?
What products to produce
