Costs and Benefits

What is a trade-off?

• the price of buying something else

• something used to make something else

• giving something up for something else

• an item you need in order to survive

How would a cost and a benefit be correctly compared and contrasted?

• They are both needs. The cost is the price of something, and the benefit is what you have to give up

• They are both part of a trade-off. The cost is how a need or want is satisfied, and the benefit is the price of something.

• They are both the result of buying something. The cost is the price of something, and the benefit is the useful result of buying something.

• They are both wants. The cost is something that you cannot do without, and a benefit i something that you would like but do not need.

Tara is at the checkout with dog food and a book. She realizes that she des not have enough money for both. She leaves the store with only the dog food. In this situation, what is the book?

• an opportunity cost

• a responsibility

• a benefit

• a need

What conclusion can you draw about a family that chooses to get a pool instead of a new kitchen?

• The family feels tat the pool is an opportunity cost.

• The family has decided that the cost of the pool is too high

• The family thinks the benefits of the pool are greater than the opportunity cost of not getting a new kitchen.

• The family thinks that the cost of the pool is higher than the benefit.

Marco wants to buy a gift for a friend and a new pair of shoes. He does not have enough money for both. Which solution to the problem would result in the highest benefits?

• He lists his options.

• He chooses not to buy the gift.

• He does chores to earn extra money.

• He decides that one of the items will be a trade-off.