Decisions you make today will influence your financial situation tomorrow. You make these decisions based on supply and demand, needs and wants, incentives, scarcity, and inflation. All of this can be summarized by “your current economic situation.” Limited personal financial resources affect the choices you make. You may have to give up one item to have a more valuable item (opportunity cost). When making large financial decisions, you should not make decisions on a whim. Instead, you should follow a detailed plan.

Pre-Assessment:

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Key Vocabulary:

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Competition	Exhaustible	Marginal Benefit	Renewable
Demand	Externalities	Marginal Cost	Scarcity
Economics	Factors of Production	Money	Services
Elasticity	Goods	Needs	Supply
Entrepreneur	Incentives	Opportunity Cost	Wants
Entrepreneurship	Inelastic	Price Ceiling
Equilibrium	Inflation	Price Floor