Economics 1

the study of how individuals and societies satisfy their unlimited wants with limited resources

• Wants

• Needs

• Scarcity

• Economics

things that are necessary for survival

• Wants

• Needs

• Scarcity

• Economics

the branch of knowledge concerned with the production, consumption, and transfer of wealth

• Wants

• Needs

• Scarcity

• Economics

Why would someone want to attend a good college (that would cost them more $ than an average college)?

What is the relationship between wants and needs?

• In economics, wants are things that are essential for human survival, while needs are things we may desire.

• In economics, needs are things that are essential for human survival, while wants are things we may desire.

• Needs may be helpful or make life easier, but unless we would die without them, they are not considered wants.

the alternative people give up when they make choices

• Utility

• incentives

• economize

• opportunity cost

• trade-off

methods used to encourage people to take certain actions

• Utility

• incentives

• economize

• opportunity cost

• trade-off

Why would someone choose to buy more expensive organic foods than the cheaper alternative?

the value of something that is given up to get something else that is wanted

• Utility

• incentives

• economize

• opportunity cost

• trade-off

to make decisions according to the best combination of costs and benefits

• Utility

• incentives

• economize

• opportunity cost

• trade-off