Because of limited resource (Scarcity) you might need to make a decision (trade off) on whatever must be given up to obtain some item (Opportunity cost)
Scarcity - the limited amount of the resource
Trade-off - a decision to give up something in order to obtain one thing
Opportunity cost - whatever you gave up in order to obtain one thing
Principle 1: People faces Trade-offs
Trade-off - a decision to give up something in order to obtain one thing
Ex. Bar with friends vs Study
Ex. Part-time vs University study
Ex. Lunch vs. Money
students/guardians: how to allocate time, spend money
Society faces trade offs
national defense and consumer goods (guns and butter)
clean environment and high level of income
Efficiency and equality