Resource Allocation

Scarcity: This term refers to limited resources available compared to unlimited wants. It’s like wanting multiple toppings on your pizza but only having enough ingredients for one topping.

Opportunity Cost: This term describes what must be given up in order to obtain something else – like choosing between pepperoni or mushroom on your pizza because there isn’t enough for both.

Economic System: This term describes how societies organize and distribute available resources, services and goods across a geographic region or country. It’s like deciding whether everyone at the party gets an equal slice of pizza (socialism), or if the slices are distributed based on who paid for it (capitalism).