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Alternative choices, whenever making an economic decision

Trade offs


Using a ______ is one way to analyze an economic problem

Decision-making grid


What does a Decision-making grid force you to consider?

Number of relevant alternatives; requires you to identify the criteria used to evaluate the alternatives; forces you to evaluate each alternative based on the criteria you selected


The cost of the next best alternative use of money, time, resources when one choices made rather than another

Opportunity cost


A diagram representing various combinations of goods and or services and economy can produce when all productive resources are fully employed

Reduction possibilities frontier


No point can be reached outside the curve. Why?

There are no extra resources available to produce; is it called a production possibilities frontier to indicate the maximum combinations of goods and/or services that can be produced


A way of thinking about a problem that compares the cost of an action to the benefits received

Cost-benefit analysis


One in which consumers and privately owned businesses, rather than the government, make the majority of the what, how, and for whom decisions

Free enterprise economy


The quality-of-life based on the position of the necessities and luxuries that make life easier

Standard of living


The study of economics help us to become better what?

Decision-makers both in our personal lives and in the voting booths