EPF 1
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.