1. Vocabulary Vocabulary The value of the second-best alternative that a person gives up when making one choice instead of another 1 ©2008. Oklahoma State Department of Education. All rights reserved.

2. Vocabulary Vocabulary decision made or course of action taken when faced with a set of alternatives 2 ©2008. Oklahoma State Department of Education. All rights reserved.

3. Disincentives 3

4. Vocabulary Vocabulary A tool used to choose among alternatives, weighing the cost of a product or service against the benefit(s) it will provide 4 ©2008. Oklahoma State Department of Education. All rights reserved.

5. Incentive 5

6. Cost/Benefit Analysis Risk/Reward Relationships ©2008. Oklahoma State Department of Education. All rights reserved.6

7. Scarcity 7

8. Vocabulary Vocabulary Any reward or benefit that motivates people to do something 8 ©2008. Oklahoma State Department of Education. All rights reserved.

9. Opportunity Cost ©2008. Oklahoma State Department of Education. All rights reserved.9

10. Trade-off 10

11. Vocabulary Vocabulary Giving up a little of one thing in order to get more of something else 11 ©2008. Oklahoma State Department of Education. All rights reserved.

12. Choices 12

13. Vocabulary Vocabulary An economic condition created by an excess of human wants over the resources necessary to satisfy them; an inability to satisfy all of everyone’s wants 13 ©2008. Oklahoma State Department of Education. All rights reserved.

14. Vocabulary Vocabulary A factor or disadvantage that discourages people from doing something 14 ©2008. Oklahoma State Department of Education. All rights reserved.