Lesson 3: Making Choices with Scarce Resources
Handout 1

Vocabulary

scarcity:
Economic resources are limited, that is, there is not enough of any commodity to go around. As a result, some people must do without them.

 

economic resource (economic goods):
land, labor or capital (money) which is used to produce other goods

 

tradeoff:
giving up one goal in order to achieve another goal

 

opportunity cost:
the cost of giving up one choice in order to select another choice