
Scarcity Forces Tradeoff
Definition: when there is limited or a scarce amount of resources, it forces people to make choices and face trade-offs.


Where is the tomato sauce? I need it to make dinner.
They must be out of it tomato sauce. This is the fourth week in a row that they haven't had any tomato sauce. I'll just have to make something else. I was looking forward to having pasta tonight.

Cost vs. Benefit
Definition: people choose something when the benefits of the activity or choice are greater than the costs of the action.

I really want to go to this concert, but that'll affect how much money I make this paycheck


Thinking at the Margin
Definition: most decisions that are made involve choices about getting a little more or a little less of something





My garden is looking very dead, but I want to try and upkeep it better and actually be able to grow my own fruits and vegetables. Just think of how many more peppers I'll grow once I start gardening again.
Incentives Matter
Definition: people respond to incentives in predictable ways



PRICE: $25.00
Well, I was going to buy this toy for my kid, but that's way too expensive for me right now. I'll wait and see if the price drops sometime soon.
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Scarcity Forces Tradeoff
Definition: when there is limited or a scarce amount of resources, it forces people to make choices and face trade-offs.


Where is the tomato sauce? I need it to make dinner.
They must be out of it tomato sauce. This is the fourth week in a row that they haven't had any tomato sauce. I'll just have to make something else. I was looking forward to having pasta tonight.

Cost vs. Benefit
Definition: people choose something when the benefits of the activity or choice are greater than the costs of the action.
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