Describe one economic decision that must be made by each of the four sectors of the economy:

 

• households
• businesses
• government
• foreign (our trading partners).

Be sure to state what a possible opportunity cost might be for each of these economic decisions.Recall that the opportunity cost is the highest valued thing that is sacrificed when a choice is made. Feel free to discuss this topic in one of two ways: either discuss how one economic decision impacts each of the four sectors, or discuss how unrelated economic decisions impact each of the four sectors. Your examples should be your own, not copied from another source.

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Economic Decisions and Opportunity Costs for the Four Sectors of the Economy 1 Households Economic Decision Households must decide how to allocate their income among various expenditures such as consu... View the full answer