CONTENT STATEMENT
- Individuals must make decisions because of the scarcity of resources. Making a decision involves a trade-off.
CONTENT ELABORATION
Scarcity refers to the lack of sufficient resources to produce all the goods and services that people desire.
Individuals must make choices about how they spend their money and time because these are limited resources. Individuals make decisions, which involve trade-offs, about what to give up or do without to acquire or achieve something else. For example, a student wants to buy both a bicycle and computer game but does not have enough money for both. The student decides to purchase the bicycle and the trade-off is the computer game.
EXPECTATIONS FOR LEARNING
Describe the cost or trade-off of making economic decisions.