1. Economics is the study of ____________________ and _________________________.
2. What is opportunity cost?
a. How would the picture to the right be an
example of opportunity cost?
3. Scarcity is the tension between __________________________________________ and
________________________________.
a. What did Dwight Eisenhower explain as the opportunity cost of the nuclear
buildup due to scarcity?
4. Government officials use economic theory to guide
_____________________________.
5. Incentives are a set of external (rather than intrinsic) _____________________________
that explain people’s choices.
a. What’s your current incentive for watching this video and filling out this
worksheet?
6. What is the difference between macroeconomics and microeconomics?
a. What would be an example of something studied in
macroeconomics?
b. What would be one example of something studied in
microeconomics