Intro-to-Business-Ch.-1-2-Worksheet - Intro to Business...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Intro to Business Chapter 1-2 Notes The Basic Economic Problem Individuals and businesses have unlimited wants and needs, but the economic resources they have are limited. The basic economic problem is ________________________________ ____________________________________________________________ Example: Your school may have to cut back on certain classes or extracurricular activities because operating costs are increasing faster than the annual budget. Scarcity __________________________________________________ ___________________________________________________________ Choices Everyone makes decisions based on _______________________. Scarcity forces you to make choices or decisions among the alternatives. _________________________________is the process of choosing which wants, among several options, will be satisfied. Tradeoffs and Opportunity Costs Most of the choices you make result from considering a number of alternatives. When you decide on one alternative, ______________________________________________________. A ______________________ is when you give up something to have something else. __________________________________ is the value of the next-best alternative that you did not choose. The benefit you get from your choice should be greater than the benefit from the next-best choice.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Decision-Making Process There are six steps in the decision-making process.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern