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1.3 Opportunity cost

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

What is trade-off?

a)

Your choice

b)

What you give up to make a choice

c)

How much money you pay

d)

The willingness to give something away

2.

What is scarcity?

a)

Having too many resources

b)

Not having enough resources

c)

Need to make a choice

3.

What is opportunity cost?

a)

Your first choice

b)

Your final choice

c)

How much more money you pay

d)

The last you would give up to make a choice

4.
A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?
a)
muffins 
b)
cookies 
5.

The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their backyard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision?

a)

vacation

b)

swimming pool

c)

backyard

d)

money

6.

Emelia has been invited to a sleepover at Chloe’s house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe’s house. What is the opportunity cost of her decision?

a)

seeing her favorite band

b)

spending time at a friends house

c)

Chloe's house

d)

a sleepover

7.

Max is studying for his spelling test. Unfortunately, his favorite TV program is on right now. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision?

a)

studying for a test

b)

watching TV show

c)

spelling test

d)

nothing

8.

The local government for a community must decide what to do with the sales tax collected. They could build a new skate park or they could buy more computers for the public library. The officials decide to build a skate park. What is the opportunity cost of their decision?

a)

new skate park

b)

more computers

c)

local government

d)

public library

9.

The economic problem is that

a)

resources are limited and wants are limited.

b)

resources are unlimited and wants are limited.

c)

resources are limited and wants are unlimited.

d)

resources are unlimited and wants are unlimited.

10.

The opportunity cost of a good is

a)

its price in dollars and cents.

b)

the alternative goods forgone.

c)

the price of alternative goods foregone.

d)

none of the other options

11.

A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is

a)

20 whips

b)

30 saddles

c)

50 whips

d)

60 saddles

12.

The opportunity cost of Australian households moving away from coal-powered energy to solar-powered energy includes

a)

the loss of jobs in the coal industry

b)

a cleaner environment

c)

reduced coal production

13.

Because of scarcity, people are forced to make _________ about how to use resources.

a)

choices

b)

opportunities

c)

analyses

d)

investments

14.

What name is given to the value of the next best alternative that you give up when you make a decision?

a)

trade-offs

b)

opportunity cost

c)

lost opportunities

d)

options

15.

You win a football match ticket that worth $100, but need to pay 25% tax. What is the opportunity cost if you choose to stay home and watching a TV show that you need to pay $20 rather than going to the football match?

a)

$125

b)

$100

c)

$95

d)

$75