1-2 Economic Choices Flashcards
1
Q
The basic economic problem
A
The mismatch of unlimited wants and needs and limited economic resources.
2
Q
Scarcity
A
Not having enough resources to satisfy every need.
3
Q
Economic decision-making
A
The process of choosing which needs and wants will be satisfied.
4
Q
Trade-off
A
When you give up something else.
5
Q
Opportunity cost
A
The value of the next best alternative that you were not able to choose.
6
Q
What are the 6 steps to Decision-Making Process?
A
- Define the problem.
- Identify the choices.
- Evaluate the advantages and disadvantages of each choice.
- Choose the best alternative.
- Act on your choose.
- Review your decision.
