Section 2
Individual Decision Making
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
4 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/19894/square/o-203.jpg)
Scarcity Leads to Tradeoffs and Choice
When scarce resources are used, actors are forced to make choices that have an opportunity cost.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20274/square/eel-bay-turtle-bay-beach-4.jpeg)
Individuals Face Opportunity Costs
Individuals face opportunity costs when they choose one course of action over another.
![Thumbnail](../../../../../../figures.boundless-cdn.com/29737/square/cnx_econ_c12_003.jpg)
Individuals Make Decisions at the Margins
Individuals will choose the option that yields the greatest net marginal benefit.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20278/square/450px-sale-sign.jpeg)
Individuals Respond to Incentives
Incentives are ways to encourage or discourage certain behaviors or choices.