Welcome to AP Economics

Opportunity Cost is 

• The alternatives you didn't choose
• The second best alternative 
• The negative aspects of an action
• The choice you made

All of the following are possible opportunity costs to the decision to go out for Pizza except

• You could have gone out for Chinese food

• Eaten at home instead

• You could have gone to your friends house

• You will have consumed a lot of food

All of the following are possible costs of your decision to go away to college except

• You will spend lots of time studying
• There may be a lot of social distractions
• You will become more educated
• You will be paying a lot of money

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 to their fullest potential
• Scarcity does not exist in places where people are rich
• Scarcity is not a reason why people have to make economic decisions

The fact that it smells like dog food near the Purina Factory can be considered 

• An external cost to the public
• An external cost to the factory operators
• An external cost to everyone involved
• An external benefit to the factory operators

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

• Tiredness

• 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

If you decide to relax (leisure) for 7 hours instead of 5, what is your opportunity cost?

• 2 hours of study
• 2 hours of leisure
• 5 hours of leisure
• 5 hours of study

You buy a chair on craigslist for $10. You then discover that this is a special chair you could sell for $100, you decide to keep the chair anyway. What is the opportunity cost?

• $10
• $90
• $100
• $110