There Is No Such Thing As Free Lunch Flashcards
What is scarcity?
A condition in which our wants are greater than the resources available to satisfy those wants
What does scarcity prohibit?
Spending and saving the same dollar
What is choice?
A condition of limited resources to meet unlimited wants, we must constantly make choices about which of our wants to satisfy
What is opportunity cost?
Most highly valued opportunity given up when a choice is made
What does opportunity cost equate?
Opportunity lost
Because of ______ people must make choices, and when they choose, they incur a(n) ________.
Scarcity; opportunity cost
Why is there no such thing as a free lunch?
When people choose, they incur an opportunity cost
Because people have unlimited wants and limited resources, what must be done?
Make choices about which wants to satisfy
If Sam wants to: attend a basketball game, clean her house, go to a movie, and go to the library, which is her opportunity cost of going to a basketball game?
Cleaning her house
Why does scarcity exist?
There are not enough resources to produce everyone’s wants
