| A | B |
|---|
| choice | condition arising from unlimited wants and limited resources |
| decision | conclusion reached after considering alternatives and their results |
| resources | things we have in limited supply which may include personal, capital, human, natural, and entrepreneural |
| scarcity | condition of not having all the goods and services one wants |
| wants | desires that can be satisfied by consuming or using a good or service |
| opportunity cost | second-best alternative |
| trade-offs | giving up one benefit or advantage to gain one which is more favorable |
| PACED | a decision-making process designed to help solve problems |
| benefits | may be monetary or non-monetary gain received because of an action taken or decision made |
| costs | what we give up to obtain something |
| cost-benefit analysis | process of examining the positives and lost benefits of each alternative |
| diminishing marginal utility | relationship in which additional satisfaction with consuming additional units will eventually decline |
| marginal analysis | decision-making tool for comparing additional benefits of a course of action to additional costs |
| marginal benefit | additional gain from consuming or producing one more unit of a good or service |
