Economic Decision Making

Diagram showing the various combinations of goods an economy can produce if all resources are used

• Trade-Offs

• Productions Possibilities Frontier

• Opportunity Cost

• Scarcity

Alternative choices when making an economic decision

• Productions Possibilities Curve

• Opportunity Cost

• Scarcity

• Trade-Offs

What is given up when an economic decision is made.

• Opportunity Cost

• Scarcity

• Trade-Offs

• Capital Gains

The problem all economic systems face is

• Too many goods and services.

• Scarcity.

• Not enough money.

Economics is the study of

• How people make and spend money.

• How people use unlimited resources to satisfy their limited wants.

• How people use scarce resources to satisfy unlimited wants and needs.