Scarcity, Choices and Opportunity Cost

What is scarcity?

• the act of giving up one thing for another

• a problem in which wants are greater than what is available

• each possible use of a resource

• the cost of choosing one choice over another

What is Trade-Off?

• the act of giving up one thing for another

• all combinations of goods and services that can be produced from a fixed amount of resource in a given period of time

• a problem in which wants are greater than what is available

• the cost of choosing one choice over another

What is Opportunity?

• the cost of choosing one choice over another

• all combinations of goods and services that can be produced from a fixed amount of resource in a given period of time

• the act of giving up one thing for another

• each possible use of a resource

What is Opportunity Cost?

• the act of giving up one thing for another

• a problem in which wants are greater than what is available

• the cost of choosing one choice over another

• each possible use of a resource

What is Production possibilities?

• all combinations of goods and services that can be produced from a fixed amount of resource in a given period of time

• the act of giving up one thing for another

• a problem in which wants are greater than what is available

• the cost of choosing one choice over another