Download presentation
Presentation is loading. Please wait.
Published byBrendan Price Modified over 8 years ago
1
FrontPage: Would you rather have less time or less money? Last Word: Section Review Chapter 1 due Fri.; Quiz Mon.
2
Academic Economics Chapter 1, Section 2
3
Must be made because of scarcity Made by every single person Choices drive an economy, and people look for three things when they make choices: Incentives – benefits offered to encourage people to act certain ways Utility – the usefulness of something The desire to economize – make decisions according to what you believe is best combo of costs and benefits. **Every choice involves a cost – “There is no such thing as a free lunch.”
4
Exchanging (choosing) one thing for the use of another is called a trade-off. Trade-offs involve opportunity costs, or the loss of the next best alternative when you choose another. Considering the opportunity cost of a decision can help people make decisions.
5
The value of the next best alternative, the “cost” of choosing one thing over another. Ex. the opportunity cost of studying Fri. night might be missing the football game.
6
Trade-off: Name given to the next best alternative (thing you could do) Opportunity cost: The value of that next best alternative VS
8
Give one good reason why Superman should NOT save cats. FrontPage:
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.