Which CD to buy? How many hours to study? Which movie to see? If you’re like most people, you constantly face decisions because you don’t have enough time and money to do everything. At its most basic level, economics is the study of how people make choices when they face a limited supply of resources. In this chapter you will begin your study of economics by investigating two basic economic ideas: scarcity and trade-offs.
Quickly jot down three decisions you made within the last 24 hours. For each decision, list two choices you decided against when you made the decision.