Explanation should include
- the concept that opportunity cost is the value of whatever an entrepreneur gives up when he/she makes a choice
- the relationship between opportunity cost and scarcity
- examples of how opportunity cost and scarcity affect entrepreneurs.
Process/Skill Questions:
- What are examples of opportunity cost?
- Why does scarcity occur?
- How might scarcity be considered the foundation of economics?
- Why must entrepreneurs understand the concept of opportunity cost?
- How can opportunity cost affect entrepreneurial decisions? What are examples to illustrate this relationship?
- What is one opportunity cost of becoming an entrepreneur?