Choices and Changes

Instead of going out with her friends, Jane chose to stay at home to study for her math test. Jane got a high score on the test. Why did she earn a high score on the test?

• because Jane is smart

• because Jane doesn't like going out with her friends

• because Jane chose to study

• because Jane's teacher likes her

A teacher has five movie tickets to give to her ten students. What is most scarce?

• teachers

• movies

• tickets

• students

On your way to the shopping mall, a friend asks you to play basketball. Another friends wants you to go to his house to play video games. What must you do first?

• play basketball

• go to the mall

• play video games

• make a choice.

On Saturdays Alicia usually goes to see a movie with her friends. However, last Saturday she chose to visit her grandmother instead. What was the opportunity cost of Alicia's decision?

• visiting her grandmother

• the price of the movie ticket

• seeing the movie

• staying home with her parents and watching television

Jim wants to be a good cook. He is taking cooking lessons. Jim is improving his

• opportunity costs

• human capital

• work habits

• alternative choices

After graduating from high school, Marcus found a better paying job than his sister who dropped out of school. Why?

• Marcus was luckier than his sister was.

• Men are always paid more to work than women are.

• Finishing school made Marcus a more productive worker.

• Marcus's sister had no choice.

When we make a decision we choose between two or more alternatives. What is always true about alternatives?

• There are costs and benefits to every alternative.

• Every alternative involves maximizing costs.

• Every alternative has a benefit but not every alternative has a cost.

• All alternatives has the same opportunity cost.

Which of the following best describes the concept of scarcity?

• When we have no resources at all.

• When our available resources are greater than our wants.

• When we have wants equal to our resources.

• When our wants are greater than our available resources.

Which of the following is an important economic reason for going to school?

• You can make friends and meet new people at school.

• Going to school can provide you with capital goods which help you get a job.

• School can help you develop your human capital which can provide you with more job alternatives.

• The longer you stay in school, the fewer your job opportunities.

At a clothing factory each worker makes complete sheets. What would happen if the manager decided to use an assembly line in which each worker makes only one part of the shirts?

• The factory could make more expensive shirts.

• Comparative advantage would allow the factory to make more shirts.

• Division of labor would allow the factory to make more shirts faster.

• The cost of making shirts would increase, and the factory would hire more workers.