Opportunity Cost

The economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

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 

What is opportunity cost?

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

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

A need is something we can't live without.

• True

• False

A want is something we would like to have but could live without it.

• True

• False

Which items should you pay for before buying something you want?

• rent

• utilities

• groceries

• all of the above

Which is a need?

• iPhone

• medication

• coffee

• Ray-Ban sunglasses

Columns are labeled by ______________.

• numbers
• letters
• symbols
• colors

Rows are labeled by __________.

• numbers
• letters
• symbols
• colors