Opportunity Cost & Allocation Review

What is an opportunity cost?

• how to save money

• 1. how much money something costs

• 1. the choice you make 

• 1. the choice you give up when you make a decision 

Why do we have to allocate resources? 

• 1. There are enough resources for everyone. 

• 1. Resources are scarce. 

• 1. We can have everything we want. 

Stacy had a blue and red pencil. She chose the blue pencil. What is her opportunity cost?

• Red

• Blue

• Neither

Mark really wanted to buy a video game. However, he decided to save up to buy a new bike. What is his opportunity cost?

• Video Game

• New Bike

• Both

All resources are scarce. What does scarce mean?

• there's MANY resources

• there's not enough resources for everyone

• when you give up a choice for another choice

Allocation means...

• to buy goods, services, and resources

• to save goods, services, and resources

• to give away goods, services, and resources

Mrs. High put her students' names into a cup. She picked one by random to decide what book to read in the morning. Which allocation strategy did she use?

• Lottery

• Majority Rule

• Price

• Sharing

Marcus went to the store and chose a box of cereal. He paid for it at the register with money. What allocation strategy is shown here?

• Personal Characteristics

• Authority

• Price

• Contest

Mrs. Tammy's class voted for which animal shelter their canned food drive would go to. Which allocation strategy is shown here?

• Force

• Sharing

• First come first serve
• Majority Rule

The hallway monitor decided to give a pupcash to Tim instead of Tom. Which allocation strategy is shown here?

• Price

• Authority

• Lottery

• Force