Economic District Final Study Guide

When you make a choice, the next best option that you did not choose is called...

• a Trade-off

• a Opportunity cost

• a lost opportunity

• a rejected option

What should be the most important factor considered when you make a decision?

• the Trade-offs

• the Opportunity cost

• the lost opportunities

• the opinions of others

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

• Choices

• Opportunities

• time

• investments

A trade-off is

• a purchase in a marketplace.

• an alternative that we sacrifice when we make a decision.

• any good or service a consumer needs.

• a factor of production.

Which one of these definitions best describe Opportunity Costs?

• The cost of making one decision over another.

• The cost for the opportunity to buy anything you want.

• The opportunity to improve ones social status.

• The time it will take to earn the income to purchase a good.

The number one thing that is given up in order to do something else is referred to as the _________.

• law of supply

• law of scarcity

• opportunity cost

• equilibrium price

"Opportunity cost" is related to the basic economic concept known as ___.

• demand

• price

• scarcity

• supply

If you could either study for an economics test, go to dinner with friends, or play basketball tonight, but you decided that good grades were more important than basketball (though you REALLY wanted to play ball), what would be your opportunity cost?

• playing basketball

• studying for a test

• dinner with friends

Which of the following represents a marginal cost?

• mortgage payments

• the sum of fixed costs and

  variable costs

• wages and raw materials

• the cost of producing one additional unit

According to rational economic decision making, we should accept an option when

• the costs outweigh the

  benefits

• the benefits outweigh

  the costs

• there are no costs

• there are no benefits