Decision made or course of action taken when faced with a set of alternatives.
Reaching a conclusion after considering alternatives and their results.
Tangible objects that satisfy economic wants.
Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.
The second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another.
People and firms that use resources to make goods and services.
The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use. The problem of scarcity faces all individuals and organizations, including firms and government agencies.
Activities performed by people, firms or government agencies to satisfy economic wants.
A situation in which people produce a narrower range of goods and services than they consume. Specialization increases productivity; it also requires trade and increases interdependence.
Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.