part 2

• Choice is when there is scarcity, people have to choose which wants to satisfy first.
• Choice is when people decide how to allocate their limited resources.
• Utility is the satisfaction or usefulness the consumption of a good can bring
• Utility is one of the considerations when making decisions
• Utility is when economists believe that humans are rational beings, and as such will make decisions that maximize their utility.
• Opportunity Cost is the value of the next best alternative
• Opportunity Cost is what we give up by choosing something else
• Opportunity cost includes the monetary costs, time, and effort