ECON Chapter 1 Review

Opportunity Cost is 

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

What is the difference between cost and opportunity cost?

• Cost refers to the negative aspects a decision could have whereas opportunity cost only refers to the alternative you didn't choose
• Opportunity cost refers to the negative aspects a decision could have whereas cost only refers to the alternative you didn't choose
• They are interchangeable (they mean the same thing but are different parts of speech)
• There are multiple opportunity costs to an individuals decision but only one cost

All of the following are trade-offs except

• A teenager decided to choose the smarties over the stickers, pencils, and tissues
• A teenager decides to study instead of sleeping or being on her phone
• Ford decides to make hybrids rather than SUVs
• McDonald's needs to decide how many hamburgers to buy

Which statement is true

• Scarcity doesn't exist for everyone
• Nothing in life is free
• Rarely do we use economic thinking
• Sometimes there is no downside to a decision

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
• Sleep
• 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

There can be more than one-trade off

• True
• False

An individual can have more than one opportunity cost for a particular decision

• True
• False

Something we desire but that is not necessary for survival

• Want

• Need

• Good

• Service