Ch1 Scarcity & Opportunity Cost

Front

True/False: Human wants will always exceed available resources.

Back

TRUE

Front

These are the things we desire to have.

Back

Wants

Front

When "wants are greater than the resources available to satisfy them," it is called...

Back

Scarcity

Front

Because of scarcity, people are forced to make _________ about how to use resources.

Back

Choices

Front

When you make a choice, you often have to give up other options...those things are called the...

Back

Opportunity Cost

Front

What is opportunity cost?

Back

what you give up to make a choice

Front

What is scarcity?

Back

Not having enough resources

Front

Which one of the following is an opportunity cost?
You stay out late and your parents ground you.
You run a red light and you get a ticket.
You choose to give up math to study for history.
In a softball game, you miss the ball and strike out.

Back

You choose to give up math to study for history.

Front

In economics a decision is free if:

Back

A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.