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Economics, Fall 2016

2.1 Basic Economics


1. In your own words define economics:
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2. Economics Defined:
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3. ________________ is the problem that exists because we dont have enough
____________ to satisfy everybodys needs.
4. Scarcity forces ___________, which is a means of allocation.
5. Allocate: to _______________ scarce ____________ to get the most bang for your
buck.
6. Every choice you make includes _____________________. A
_____________________ is anything you give up for something else.
7. A trade-off can be ____________________________________________.
8. Trade-off scenarios:
If you go the beach, what are some trade-offs?
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If you have $10 and spend it on lunch at Chipotle, what are some trade-offs?
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9 An _______________ _______________ is a type of trade-off. It is the ________ of
passing up the next best choice when making a decision.
10. If you go to the beach, instead of going to work, what is the opportunity cost?
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