1. Take a minute consider this question. Write down as many words and/or phrases that come to mind as you can.

2.  Economics = the study of how people use limited resources  For example, why can’t have everything I want and be anything I want to be?!  Scarcity is at the center of economics  Unlimited wants, limited resources

3.  Scarcity leads to decision- making  Every choice requires a trade-off – you must give something up if you want to get something  Whatever you give up is the opportunity cost  For example, what is the opportunity cost of being in class right now?

4.  There is no such thing as a free lunch!!!!!!!!!  You make thousands of economic choices every year  By understanding opportunity cost and weighing the consequences your actions will be informed and prudent!

5.  Give the definition for each in your own words then provide an example:  Scarcity  Trade-Off  Opportunity Cost