Section 2 Guided Reading and Review
As you read, answer the guiding question – “Why do decisions involve trade-offs?” Explain what is meant by opportunity cost. Describe how people make decisions by thinking at the margin.
All individuals and businesses face decisions that require trade-offs. Trade-offs can involve things that are easily measured, such as money or property, or those that cannot be easily measured, such as enjoyment or job satisfaction. Decisions that require trade-offs always have an opportunity cost associated with them.
