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3.2 economics
economic understanding
Term | Definition |
---|---|
scarcity | the situation that exists when there is unlimited demand, but not enough supply of a good or service |
choice | an option |
resource allocation | the way things are distributed. ex; vote, share, contest, force, authority, lottery, first come/ first serve, personal characteristics |
opportunity cost | the value of the next best alternative a person does not choose |
trade - off | a choice to have less of one thing to get more of something else |
supply | the quantity of a good or service available for sale |
demand | the quantity of a good or service consumers are willing to buy |