2. People Choose There is always a choice Do you spend or save? Do you buy the most expensive or the generic?
3. All Choices Involve Costs Opportunity Cost Cost of the next best choice that you gave up because of the choice you made. Spend your paycheck on a new cell phone give up on the choices that money could have provided in the future
4. People Respond to Incentives in Predictable Ways Incentive is a cost or benefit that influences our decisions Money buy stuff, freedom to make more choices Satisfaction you have to be happy with what you do or the decisions you make Values pay extra for organic Saving more goods and services in the future Education more money in the future more control over your life
5. American Economic Systems influences choices and incentives Relies on markets, choices, and incentives Market Private –Enterprise system provides choices and opportunities Americans are free to make their own economic choices
6. People Gain When You Trade Voluntarily You are not forced to make trade/buy goods and services or work for a particular employer You do things because you perceive the benefits are greater than the costs Need to trade carefully/make wise decisions or you will not benefits as much from your trade/purchase/decision
7. Choices Have Future Consequences Spend today you will not have the money to spend in the future Conserving, investing and saving now will increase your choices and freedom in the future
