Opportunity Cost/Scarcity F & C P2 2/7

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

According to the meaning of opportunity cost, what

is sacrificed when a decision is taken?

• An identical alternative

• Any alternative

• The least valuable alternative

• The next best alternative

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

What is opportunity cost?

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

The Austin City Council would like to build a new skate park or Soccer Field with tax money. The decide to build a skate park. What is the opportunity cost for the community?

• Austin City Council

• taxes

• skate park

• soccer field

What is a want?

• A person
• Something you would like to have but don't need to live
• Purple
• Something you need to live

Which of these is a need?

• car
• water
• video games
• candy

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.

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires

Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?

• Shoes

• Jacket

• Dress

• Purse