Ch+1.2

**Trade-offs** **Individuals and Trade-offs** **Businesses and Trade-offs** b. Get to see a movie, but possibly by yourself because friends are working or at school on Tuesdays c. Get to see a movie with friends on Saturday, but loose some money d. Watching t.v. at home would save you your money, but no social time outside 8. I would work a 4 hour shift because it's more money than a 2 hour shift, but then again it is less than a 6 hour shift. Although in a 4 hour shift I could hang out with friends more and do tasks that need to be done such as homework. 9. An employee's past experience if any, social skills, personality, and hygiene.
 * Ch. 1.2 Notes & Questions #1-6, 8, 9**
 * businesses, large groups of people, and even the government make decisions that involve trade-offs
 * A **trade-off** are all the alternatives that we give up whenever we choose one course of actions over another
 * Every decision we make involve trade-offs, for example if one chooses to work more they miss the football game or other events, but you make money
 * Businesspeople make decisions that create trade-offs, for example if a manufacturer decides to use all of his material for chairs he they cannot make tables or desks at that point in time
 * Society and Trade-offs**
 * Even countries make decisions that involve trade-offs, such as **Guns or butter** which means make more military products or consumer goods
 * Resources are limited, so if steel is used to make guns, one can no longer make dairy equipment needed to make butter
 * Defining Opportunity Cost**
 * When individuals, businesses, or governments decide on a course of actions they face many trade-offs
 * One of the options is usually more desirable than all the others, this is called the **Opportunity cost**
 * Using a Decision-making Grid**
 * Sometimes a decision's opportunity cost may be unclear or complicated, so a pro's and con's like chart is made
 * Thinking on the Margin**
 * When you decide how much or less to do you are **thinking on the margin**
 * thinking at the margin means you are thinking about using one additional unit such as one minute or one dollar
 * Making a Decision at the Margin**
 * You think about the pros and cons of your predicament and then make a decisions, you just made a decision at the margin
 * Questions**
 * 1) Going to sleep early and not studying= Fail test. Grow tobacco on land= destruction of your land. Go to concert= be tired at school.
 * 2) Opportunity cost must always be something desirable because it's the one thing you choose out of all the other options
 * 3) To explain the choice of making military goods or consumer goods
 * 4) To think at the margin means to decide what you want based on pros and cons
 * 5) Yes it is still worth it because you would still be saving $40
 * 6) a. Get the pleasure of feasting on delicious pizza, but loose money