• has gained. Economic choice is a conscious decision to use scarce resources in one manner rather than another. c) Involves a complex mix of homogenization and increased heterogeneity given the global diffusion of popular culture, global media corporations, and communications networks. To put it another way, the opportunity cost of a choice represents the second best use of scarce resources—the item the consumer did not buy, the good the business did not produce, or the program the government did not fund. That is, if the price of a cup of coffee is $1.50, most people express the “cost” of that cup of coffee in monetary terms—one dollar and fifty cents. Scarcity forces people to make trade-offs because they simply cannot have everything they may want. The market mechanism provides a financial incentive for firms to minimize the pollution they create. Incentives signal to consumers, businesses, workers, savers and investors, and other marketplace participants how they should use their scare resources. Consumers, for example, consider the marginal utility, or additional satisfaction that they might receive from the purchase of a second or third cup of coffee before buying additional coffees. Economists see the real cost, or opportunity cost, of any choice in terms of what is foregone, or given up, if resources are used one way rather than another. (pg4) Describe how scarcity of time, money, or resources affected a recent economic decision you made. ... Principles of Economics Study Set 10; Quiz 2: The Economic Problem: Scarcity and Choice; All Markets Involve Buyers and Sellers Engaging in Exchange. In a similar way, incentives influence people's economic decisions and actions. The two basic characteristics of resources ar view the full answer There are many economies around the world. Economics is a social science concerned with the production, distribution, and consumption of goods and services. LANGUAGE OF ECONOMICS Economize: To base decisions on an assessment You can view more similar questions or ask a new question. The most basic understanding about economic choice is that all choices have a cost. Question 217. 1. period 5, group 4 2. period 4, group 5 3. lanthanum series 4. nonmetals 5. transition metals b.) d. Of goods and services produced in an economy. Incentives affect many types of decisions. Here's how it impacts your workplace—and our democracy. • has made herself an outcast of, a.) If the buyer was both thirsty and hungry but had just $1.50 to spend, the opportunity cost of buying the coffee may well have been the lost opportunity to consume a $1.50 pastry. ECONOMICS BACKGROUND Saving means setting aside some of today’s income for future use. If you're the analytical type, fascinated by the world around you, then an economics major might be a good choice for you. 1.All choices involve costs d. Aggregate demand. 1. period 5, group 4 2. period 4, group 5 3. lanthanum series 4. nonmetals 5. transition metals b.) This predictable consumer response to a change in price is the foundation of the most famous law in economics—the law of demand. All economic choices involve costs even if the choice. 3. True False . Most real economic choices involve small (or marginal) changes, rather than all-or-nothing decisions. It is about weighing different choices or alternatives. What is true, What incidents reveal that Leonce is not a good match as a husband for Edna? c. Of labor supplied by all households. You can view more similar questions or ask a new question. Economics is essentially a study that looks at the allocation of scarce resources. We have only so much all economic choices involve, so many people might be derived aside. 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