Civics: U8 L5

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

What is opportunity cost? 

• your choice
• what I give up to make a choice 

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

The Welch family has saved some money.  They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard.  They decide to spend the money on a swimming pool.  What is the opportunity cost of their decision?

• vacation 
• swimming pool 

Emelia has been invited to a sleep over at Chloe’s house for this Saturday.  Emelia has tickets to see her favorite band in concert that same night.  She decides to give the tickets to her sister and go to Chloe’s house.  What is the opportunity cost of her decision?

• seeing her favorite band 
• spending time at a friends house 

If the demand of a product drops, you would expect the price of the product to...

• rise
• stay the same
• go up
• decrease

Which of the following terms describes the primary objective of any business?

• demand
• profit
• supply
• money

Demand can be changed by

• consumer taste
• productivity
• the number of products
• the number of competition

Which of the following would not cause as shift in demand?

• Decrease in income
• Lower supply
• Change in tastes
• Increase in price

What is consumption?

• The use of a good
• The use of a service
• The use of a good or a service