Scarcity and Opportunity Cost The Economic Problem

What two things does each economic choice involve?

benefit and opportunity cost.

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

Choices- trade offs

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 Earning money from a job Time with friends Getting job experience and skills Spent $40,000.

What is the main economic problem?

Scarcity

What kinds of choices do businesses need to make?

businesses need to make choices about what products to make and what resources to produce.

What kinds of choices do consumers need to make?

consumer need to make choices about what to buy, trade, or use.

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

limited resources

What is meant by opportunity cost?

next best thing you give up.

What does scarcity mean?

not enough resources because we have unlimited wants but limited resources.

What is unlimited or endless?

our wants

What is limited?

resources