Purpose: To demonstrate your understanding of Economics and it's importance.

Instructions: 1. For each of the following scenarios, use the Three Keys to Smart Choices to make a decision. Justify your decision by discussing how you used each of the three Keys to arrive at your decision:

Go out for dinner vs. make dinner at home Buy a new car vs. take public transportation Start a business vs. work for someone else.

2. Using the choices you made in Questions 1, describe the negative and positive externalities associated with making these choices.