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Economics

Scarcity and trade-offs

Scarcity means limited resources cannot satisfy every possible use.

Maya has $35 to spend on fun this week. She buys a $35 concert ticket and puts back a $20 book she also wanted. Why does getting one thing she wants mean giving up another?

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What you'll learn4 ideas
  • Scarcity means what you have, like Maya's $35, can't cover everything you want.
  • Time is limited even when something costs no money, so free movies still take hours from other things.
  • A trade-off is giving up one thing to get another, like gaming for an hour at the gym.
  • When workers have unused paid time, it can cover extra work without giving up any other job.
Chapter 1: Economic choice and opportunity cost6 lessons · 23 min
  1. 1Scarcity and trade-offs3 min
  2. 2Opportunity cost4 min
  3. 3Marginal analysis4 min
  4. 4Sunk costs3 min
  5. 5Economic incentives3 min
  6. 6Challenge: Economic choice and opportunity cost6 min
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This lesson is part of the Economics course.

Example plan3 lessons · 11 min

Scarcity and trade-offsEconomic choice and opportunity cost3 min
Opportunity costEconomic choice and opportunity cost4 min
Marginal analysisEconomic choice and opportunity cost4 min

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