Chapter 1-2 and 1-3
SCARCITY, CHOICE AND OPPORTUNITY
COST
ECONOMIC QUESTIONS
What to Produce
 How to Produce
 For Whom to Produce

VOCAB
Scarcity- combo of limited resources and
unlimited wants
 Allocate- or distribute resources for maximum
use
 Productivity- level of output that results from an
input level
 Efficiency- use of smallest amount to produce
the most

VOCAB CONTINUED
Division of Labor- assigning a small number of
tasks to each worker.
 Specialization- focusing on one activity


Trade-off: when one good is sacrificed for another.

Opportunity cost- value of the next best alternative
given up to obtain that item