Explain Flashcards
1
Q
Example of Scarcity
A
the demand for oil exceeds the supply available
2
Q
Example of Trade offs
A
spending money on vacation, because you could have used that money for something else (two ways to use it)
3
Q
Example of needs
A
food water shelter
4
Q
Example of wants
A
newest iphone macbook pro airpods
5
Q
Example of Opportunity Cost
A
Someone spends 5 hours at the movies before an exam. The opportunity cost would be the time spent studying and the money spent at the movies. You picked an alternative but lost the potential gain with the studying option.
