Economics Unit 1-2 Basic Concepts

Alternative choices- occurs whenever we make an economic decision.

• trade-offs

• opportunity cost

• cost-benefit analysis

• free enterprise economy

• standard of living

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another.

• trade-offs

• opportunity cost

• cost-benefit analysis

• free enterprise economy

• standard of living

Way of thinking about a problem that compares the costs of an action to the benefits received.

• trade-offs

• opportunity cost

• cost-benefit analysis

• free enterprise economy

• standard of living

Economy in which consumers and privately owned businesses, rather than the government, make the majority of the WHAT, HOW, and FOR WHOM decisions.

• trade-offs

• opportunity cost

• cost-benefit analysis

• free enterprise economy

• standard of living

The quality of life based on the possession of the necessities and luxuries that make life easier.

• trade-offs

• opportunity cost

• cost-benefit analysis

• free enterprise economy

• standard of living

The opportunity cost of going to college?

• trade-offs

• opportunity cost

• cost-benefit analysis

• Not working and making money

• standard of living