Consumer Factors

EPF 1.c

Choice- a decision made, or something that is available

Decisions - executions or judgments made

Resources - materials utilized to do something

Scarcity - a quality by which something is limited

Wants - things desired

Trade-offs - decisions made to exchange one thing for another

Opportunity Costs - the potential opportunities lost when making a decision

Benefits - a favorable result after a decision

Cost - the quantifiable amount it takes to do something

Cost-benefit analysis - the analysis of the cost of making a decision versus the benefits received from making that decision

EPF1.c, EPF1.d

Effective decision making requires analysis in order to make the best decision. The best method of doing this is marginal analysis. By analyzing the cost and benefits of a decision of a slightly greater magnitude, one can quantify the costs and benefits of making much greater decisions, thus understanding whether or not such decisions are best to be made.

The factors of production are factors that contribute to the actual production of a good. Examples of factors are capital, labor, land, organization.

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