This document provides an overview of key economic concepts including scarcity, choice, factors of production, opportunity cost, wants vs needs, and decision making. It explains that scarcity means resources are limited and this creates the basic economic problem. Choices must be made between alternatives, which involves weighing costs and benefits. Decision making grids can illustrate the tradeoffs and opportunity costs of different options. The four factors of production are natural resources, human resources, capital resources, and entrepreneurship.

1. Chapter SCARCITY & CHOICE 1

7. Decision Making at the Margin 3 hours of sleep Grade of B+ on test 3 rd hour of extra study time 2 hours of sleep Grade of B on test 2 nd hour of extra study time 1 hour of sleep Grade of C on test 1 st hour of extra study time Opportunity Cost Benefits Options

12. Opportunity Cost: Production Possibilities Curve Mowing lawn=1 hour Trimming Bushes=2 hours