Opportunity Costs

The economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

Which one of these definitions best describe Opportunity Costs?

• The cost of making one decision over another.

• The cost for the opportunity to buy anything you want.

• The opportunity that will cost you loads of money.

Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?

• Shoes

• Jacket

• Dress

• Purse

Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?

• Ford

• Honda

• Toyota

• Dodge

How much of something that is available is ______________.

• Ration

• Demand

• Money

• Supply

Coins or dollars that are used to buy a good or service is called _____________.

• Demand

• Choices

• Money

• Opportunity cost

To control the amount of something that people are allowed to have, especially when there is not enough is known as _____________.

• opportunity cost

• rationing

• spending

• needs

There are 18 students that want to use blue poster board for their project, but there are only 6 pieces of blue poster board available. We could state that there is a _____________ for blue poster board.

• supply

• demand

• benefit

• need

I should ration the water bottles, and only let each person have one, since I have more than enough for everybody.

• True

• False