ECONOMICS 9

You have ₱500 and you are deciding between buying a new shirt or going to the movies with your friends. If you choose to buy the shirt, what is your opportunity cost?

• The ₱500 spent on the shirt.

• The enjoyment you would have gained from watching the movie with your friends

• The shirt you purchased

• The time spent deciding between the two options

You have ₱300 and you are considering whether to buy a new book or go out for dinner with your family. If you decide to buy the book, what is your opportunity cost?

• The delicious meal you would have enjoyed with your family

• The ₱300 spent on the book.

• The book you purchased

• The time spent thinking about your options

You have ₱800 and you must choose between attending a concert or purchasing a new pair of shoes. If you opt for the shoes, what is your opportunity cost?

• The ₱800 spent on the shoes.

• The fun and experience of the concert

• The shoes you bought

• The time spent deciding which to choose

You have ₱1,000 and are faced with choosing to go on a weekend trip or buy a new gadget. If you choose the gadget, what is your opportunity cost?

• The ₱1,000 spent on the gadget

• The time spent planning the trip

• The gadget you acquired

• The memories and experiences from the trip

Maria has a free Saturday afternoon. She can either study for her upcoming exams, go to the gym, or visit her friend. If she decides to study for her exams, what is her opportunity cost?

• The better grades she might earn from studying

• The time she could have spent at the gym or visiting her friend

• The enjoyment from studying for her exams

• The energy she saves by staying at home

Which of the following best illustrates the concept of scarcity?

• A student has enough money to buy either a new phone or a concert ticket, but not both.

• A store offers a discount on items during a sale.

• A country has an unlimited supply of natural resources.

• A farmer decides to plant corn because the price of corn is high.

Scarcity exists because:

• People always want more than what they have.

• Governments control the distribution of resources.

• Resources are limited, and human wants are unlimited.

• Everyone has enough of what they need.

Which of the following is NOT a result of scarcity?

• People must make choices.

• Trade-offs are necessary.

• Resources are allocated efficiently.

• Unlimited resources are available for everyone.

A city is facing a severe water shortage, and its government must decide how to allocate its limited water supply. Which of the following options best addresses the issue of scarcity while considering both short-term and long-term effects?

• Allow unlimited water usage but increase water prices.

• Implement strict water rationing for all residents and industries.

• Invest in technologies to recycle water and encourage conservation.

• Import water from neighboring regions, regardless of the cost.

A local government has ₱1 million to spend. They must choose between building a new school, improving the local hospital, or fixing roads. What is the most important consideration when deciding how to allocate the money?

• Which project costs the least.

• Which option will benefit the most people.

• Which project is easiest to complete.

• Which option will take the least amount of time.