SECTION 2 READING STUDY GUIDE Economic Choice Today: Opportunity Cost Before You Learned The economic problem of scarcity guides economists to ask and answer basic questions about the economy. Now You Will Learn People consider several different factors, including incentives, utility, benefits, and costs when they make economic choices. AS YOU READ 1. Take notes to help you understand how people make economic choices. Making Economic Choices Motivation for Choice Economizing 3. 4. 2. No Free Lunch Trade-off Opportunity cost Definition 5. 7. Example 6. 8. VOCABULARY HUNT Circle each term where it appears in your notes and be sure you understand its meaning. If a term does not appear, write it beside the box where it best belongs. incentives utility economize trade-off opportunity cost CHAPTER 1