Chris SinkezPeriod 3

Opportunity Cost Opportunity cost-is the value of the next-best

alternative that you did not choose Example: living in Cary instead of new York

city because the collage you want to go to is near Cary

decisionsProblem: what to do after high schoolChoices: get a job or go to collageAdvantages of job-easier, collage-better job

afterDisadvantages of job-low paying jobs, collage-

it takes a long timeChoose one: collageAct: go to collageReview: better life with collage education

decisionsProblem: how to get to FloridaChoices: flying or drivingAdvantages of flying-faster, driving-cheaperDisadvantages of flying-expensive, driving-long

timeChoose one: flyingAct: buy a ticketReview: flying is fasterCommand economy: is when the resources are owned and controlled by the government.Examples: north Korea, Russia, china Advantage: no one goes starvingDisadvantage: no one is more successful than any one else

Market economyMarket economy: is when the resources are

owned and controlled by the people of the country

Example: USAAdvantage: people can be very successfulDisadvantage: people can end up homeless

CapitalismCapitalism: refers to the private ownership of

resources by individual owners are free to decide what to produce.

Example:Advantage: the government doesn’t control

the moneyDisadvantage: the people could miss use

money

Communist economyCommunist economy-the managed economy

of a communist stateExample: north KoreaAdvantage-everyone gets has a source of

incomeDisadvantage-no one gets paid more than

anyone else