Needs and Wants

Which of the following is considered a "need"?

• A new video game

• Food

• A pair of expensive sneakers

• Toys

What is the primary difference between a "need" and a "want"?

• A need is something you desire, while a want is something essential for survival.

• A need is something essential for survival, while a want is something you can live without.

• A need is a luxury item, while a want is a basic necessity.

• A need is something expensive, while a want is something affordable.

What is an opportunity cost?

• The total amount of money you have saved.

• The cost of something you really want to buy.

• The cost of missing out on the option you did not pick.

• The price of an item on sale.

Frankie has $65.00 and wants to buy rollerblades on sale for $65.00. Her friend invites her to a movie that costs $20.00. If Frankie chooses to go to the movie, what is her opportunity cost?

• The $20.00 spent on the movie.

• The rollerblades not being on sale anymore.

• The money she earned from her lemonade stand.

• The fun she would have had at the movie.