Opportunity costs
Trade-offs
All those things you could have done with your time and/or money but didn't choose to do
Marginal cost
Anything negative about an alternative the cons
Marginal benefit
Anything positive about an alternative, the pros
The choices people make have
Both present and future consequences
Marginal analysis
Involves making decisions based on the additional benefit vs. the additional cost
PACED
P - problem A - alternative C - criteria E - evaluate D - decision
Rational decision making
Tales place when marginal benefits equal or exceed marginal cost.
Opportunity cost
The next best thing you could use your resource for
The opportunity cost of a choice is
The value of what you must give up when you make a particular choice
Rational decision making
When evaluating alternative, marginal benefits outweighs marginal cost
