Scarcity and Economic Concepts

Front

Why are all things are considered scarce?

Back

We have unlimited needs and limited resources

Front

Trade-off

Back

The next best option(s).

Front

Opportunity cost

Back

The value of the greatest opportunity missed by not choosing a trade-off

Front

Cost-benefit analysis

Back

Process of comparing the potential gains vs the possible losses of doing something

Front

Thinking on the margin

Back

Looking at the potential gains by adding a little more or a little less of something

Front

Cognitive bias

Back

A flaw in our thinking that impacts our decisions

Front

FOMO

Back

Making a decision because you are afraid to be left out of an experience

Front

Herd Mentality

Back

Making a decision because everyone else is doing it.

Front

Loss Aversion

Back

Making a choice out of the fear of what you could lose instead of what you might gain (which might be greater)

Front

Confirmation Bias

Back

Finding or focusing on information that confirms what you believe and making a decision based on that information