economic choices. basic economic problems unlimited wants and needs vs. limited resources budget...
DESCRIPTION
CHOICES Economic Decision Making - Must make smart economic decisions based on scarcity Must budget income based on needs and availability of items Decide what is needed and what is a luxury Trade-offs and Opportunity Costs – Trade-offs – When you give up something to have something else Opportunity Costs – Value of the next best alternative (helps control prices, affects decision making process)TRANSCRIPT
ECONOMIC CHOICES
BASIC ECONOMIC PROBLEMS• Unlimited wants and needs vs. limited resources
• Budget cutbacks• Operating costs do not always keep up with financial limitations
• Scarcity – not having enough resources to satisfy every need• Some countries do not produce enough resources for their
population• Delivery not always available
CHOICES• Economic Decision Making - Must make smart economic decisions
based on scarcity• Must budget income based on needs and availability of items• Decide what is needed and what is a luxury
• Trade-offs and Opportunity Costs –• Trade-offs – When you give up something to have something else• Opportunity Costs – Value of the next best alternative (helps
control prices, affects decision making process)
THE DECISION MAKING PROCESS• Define the Problem
• Problem must be clearly defined to make a smart decision
• Identify the Choices• Identify the alternatives to the purchasing choice you will make
• Evaluate Advantages & Disadvantages• How does purchasing an item affect your life, both positively and
negatively
THE DECISION MAKING PROCESS• Choose the Best Alternative
• Select the choice that is the best for you (financially, physically, mentally)
• Act On Your Choice• Purchasing the item or service
• Review Your Decision• Review the results of your decision. (buy again, have the service
again?)