Economics Trade-Off and Opportunity Cost

_______ alternatives that must be given up when one is chosen rather than another

• opportunity cost

• trade-off

• need

• want

_______ cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• trade-off

• opportunity cost

• need

• want

The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want

• trade-off

• opportunity cost

• need

• want

For example, if you are given $20 and you choose to go to the movies and spend that $20. Your next choice would have been buy candy. Your Opportunity Cost would be

• buy candy

• buy McDonalds

• Save the money

For example, if you are given $10 and you choose to go to the Burger King and spend that $10 and gave up the opportunity to go to KFC. Your next choice would have been buy candy. Your Trade-off would be

• Burger King

• The mall

• KFC

A (a)   is the basic requirement for survival

A (a)   is a way of expressing a need.

David wanted to go to the movie, but he chose to pay his water bull instead, the following would be an example of

• need

• want

• factor of production

Tim wanted to go to the movies, beach, and water park. He chose the movies and would have picked the beach second, following would be an example of

• Trade-off

• need

• want

• opportunity cost

William wanted to go to the beach and did not want to pay his rent, the following would be an example of

• opportunity cost

• trade-off

• need

• want