Introduction to Economics

Opportunity Cost could be described as

• All of the alternatives you didn't choose

• The next best alternative that you did not choose

• The negative aspects and/or sacrifices of an action

• The choice you made

Trade-offs

• are the same as opportunity costs

• can all be considered opportunity costs; it depends on an individual's choice

• refer only to the next best alternative that you did not select

• are when weighing the costs and benefits of a decision

All of the following are trade-offs except

• A teenager decides to choose the Skittles over the Goobers, M & M's, and Dots

• A teenager decides to study instead of sleeping or being on her phone

• Ford Automotive decides to make more hybrid cares rather than SUVs

• The local McDonald's needs to decide how many hamburgers to produce for the lunch rush

Which is true about scarcity?

• All resources are scarce but some are more scarce than others

• Scarcity will go away if people use their resources efficiently

• Scarcity does not exist in places where people are rich

• Scarcity is not a reason why people have to make economic decisions

Which statement is true

• Scarcity doesn't exist for everyone
• Nothing in life is free
• Rarely do we use economic thinking
• Sometimes there is no downside to a decision

What is scarce in the following scenario: you have to go to work but if you work a lot of hours you are going to be very tired

• Work

• Money

• Sleep

• Time

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

Which concept is most fundamentally related to scarcity?

• Choice
• External costs
• Benefits
• Learned behaviors

There can be more than one-trade off

• True
• False

An individual can have more than one opportunity cost for a particular decision

• True
• False