Econ-1.2 Formative Assessment Option 1

Hotspot

Click the box next to each scenario in the image that represent Choosing at the Margins.

Video Response

Provide a clear example of "Thinking at the Margins" that you have experienced.

Open Video Recorder

Multiple Choice

Based on the information provided in slide 7, which option (given in the 1st column) would give you the largest total benefit?

• Study for 1 additional hour

• Studying for 2 additional hours

• Studying for 3 additional hours

Multiple Choice

Based on the information provided in slide 7, what would be your marginal opportunity cost of choosing to study for a 2nd additional hour (assume you have already studied for 1 additional hour).

• 1 hour of sleep

• a 1 grade increase on your test

• getting a grade of "A" on your test.

• 3 hours of sleep

Multiple Choice

Based on the information provided in slide 7, which option (given in the 1st column) would give you the largest total opportunity cost?

• Study for 1 additional hour

• Studying for 2 additional hours

• Studying for 3 additional hours

Labelling

My wife and I have decided to let our youngest son choose where you go for spring break. He has given us a list of 4 places he would like to go, listed in order of his preference:

1. 1. Hawaii

2. 2. Cancun

3. 3. Nashville

4. 4. Siesta Key, FL

Based on his preference, we decided to go to Hawaii. Label the remaining options as either opportunity cost or trade-off. There will be more available labels than you need to use.

Drag labels to their correct position on the image

trade-off

opportunity cost and trade-off

opportunity cost

trade-off

Multiple Choice

Karen decided to wake up two hours earlier than normal to study with the expectation of raising her grade to a B.  Based on the chart given, do you agree with her decision?

• Yes, the total benefit of waking up 2 hours early is raising her grade to a B.

• No, the total benefit of waking up 2 hours early is raising her grade to a only a C.

• No, the opportunity cost is far too high.

• No, she would have to wake up 3 hours early to receive the total benefit of a B grade.

Multiple Choice

Which of the following is the proper definition of "Trade-offs"?

• All alternatives that are given up as a result of a decision.

• The most desirable alternative given up as the result of a decision.

• The amount of dollars exchanged when you choose to purchase a good/service.

• The logical process of deciding whether or not to make the same choice 1 additional time based on the opportunity cost and marginal (additional) benefit of making that choice.

Multiple Choice

In which the following situations would a manufacturer decide to produce more units of the good they manufacture?

• The opportunity cost is greater than the marginal benefit.

• The marginal benefit is greater than theopportunity cost.

• The marginal benefit is less than the opportunity cost.

• The marginal benefit is equal to the opportunity cost.

Multiple Choice

All of the following are examples of opportunity cost except:

• The leisure time you sacrifice to study for an exam.

• The tuition fees paid to a university.

• The building the city of Chanhassen could have built with the construction materials and labor used to build a new public library.

• The revenue Tesla could have gained by producing a compact electric car if the company had not produced its electric truck instead.

Multiple Choice

Liv is going to college and plans on buying a computer. Based on her research, Live has ranked her options in the following order:

1. MacBook Air

2. Microsoft Surface

3. Google Chromebook

4. Asus ZenBook

Based on Liv's rankings, her choice would be ______, her opportunity cost would be _______, and her trade-off(s) would be ______.

• Choice: the MacBook Air; Opportunity Cost: Microsoft Surface; Trade-offs: Microsoft Surface, Google Chromebook & Asus ZenBook

• Choice: MacBook Air; Opportunity Cost: Google Chromebook & Asus ZenBook; Trade-offs: Microsoft Surface

• Choice: the MacBook Air; Opportunity Cost:  Microsoft Surface; Trade-offs: Google Chromebook & Asus ZenBook

• Choice: Microsoft Surface; Opportunity Cost: the MacBook Air; Trade-offs: the MacBook Air, Google Chromebook & Asus ZenBook