1. FrontPage: Would you rather have less time or less money? Last Word: Section Review Chapter 1 due Fri.; Quiz Mon.

2. Academic Economics Chapter 1, Section 2

3.  Must be made because of scarcity  Made by every single person  Choices drive an economy, and people look for three things when they make choices:  Incentives – benefits offered to encourage people to act certain ways  Utility – the usefulness of something  The desire to economize – make decisions according to what you believe is best combo of costs and benefits. **Every choice involves a cost –  “There is no such thing as a free lunch.”

4.  Exchanging (choosing) one thing for the use of another is called a trade-off.  Trade-offs involve opportunity costs, or the loss of the next best alternative when you choose another.  Considering the opportunity cost of a decision can help people make decisions.

5.  The value of the next best alternative, the “cost” of choosing one thing over another.  Ex. the opportunity cost of studying Fri. night might be missing the football game.

6.  Trade-off:  Name given to the next best alternative (thing you could do)  Opportunity cost:  The value of that next best alternative VS

8.  Give one good reason why Superman should NOT save cats. FrontPage: