Economic Concepts: Opportunity Cost and Scarcity

Why do societies have to make choices?

• scarcity

• opportunity cost

• producer

• consumer

someone who makes a good or service

• opportunity cost

• scarcity

• producer

• consumer

someone who buys or uses a good or service

• consumer

• opportunity cost

• public

• producer

What is given up when a choice is made

• private

• scarcity

• choice

• opportunity cost

Good or Service?

• Good

• Service

Good or Service?

• Good

• Service

The VBCPS Rec Center

• private

• public

Pizza Hut

• private

• public

John wants to go to the movies with his friends on Friday night, and it will cost him $20. He also wants to buy a new video game that costs $20. He decides to buy the video game.

What is John's opportunity cost?

• $20

• going to the movies

• buying the video game

John wants to go to the movies with his friends on Friday night, and it will cost him $20. He also wants to buy a new video game that costs $20. He decides to buy the video game.

What was John's scarce resource?

• money

• time

• technology