Opportunity Cost

Front

What is opportunity cost?

Back

what you give up to make a choice

Front

What is scarcity?

Back

Not having enough resources

Front

What is the opportunity cost of the bakery's decision to make cookies instead of muffins?

Back

muffins

Front

What is the opportunity cost of the Welch family's decision to spend money on a swimming pool instead of a vacation to the Grand Canyon?

Back

vacation

Front

What is the opportunity cost of Emelia's decision to go to Chloe’s house instead of seeing her favorite band in concert?

Back

seeing her favorite band

Front

What is the opportunity cost of Max's decision to study for his spelling test instead of watching his favorite TV program?

Back

watching TV

Front

What is the opportunity cost of the local government's decision to build a new skate park instead of buying more computers for the public library?

Back

more computers

Front

The economic problem is that

Back

resources are limited and wants are unlimited.

Front

The opportunity cost of a good is

Back

the alternative goods forgone.

Front

Economics is the study of how people use their scarce resources to satisfy their unlimited wants.

Back

people use their scarce resources to satisfy their unlimited wants.