Opportunity Cost

What is the benefit that we miss out on when choosing one option called?

(a)  

What does considering opportunity cost help us to understand?

• the indecision of our actions

• the lack of choices we have

• consequences of our

  decisions

• the way to be helpful to others

What happens if we do not consider opportunity cost?

• we risk the lives of everyone around us

• we risk making a choice that will not be as beneficial

• we risk being unhappy forever with our decision

• we risk making a choice that may cause unexpected problems

Who is the consideration of opportunity cost important for?

• individuals

• noone

• businesses

• government

Making economic choices is very easy.

• True

• False

A business chooses the alternative that will earn the greatest (a)   .

Which is the correct formula for calculating profit?

• PROFIT = COST TO PRODUCE + SELLING PRICE

• PROFIT = SELLING PRICE – COST TO PRODUCE

• PROFIT = SELLING PRICE + COST TO PRODUCE

• PROFIT = COST TO PRODUCE + SELLING PRICE