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G4 Q1 W6 Opportunity Cost

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

One factor that can affect opportunity cost is ___________.

a)

Scarcity

b)

Income and Scarcity

c)

Income

d)

Income and taxes

2.

One factor that can affect opportunity cost is ___________.

a)

Scarcity

b)

Income and Scarcity

c)

Income

d)

Income and taxes

3.

When do people suffer from poverty?

a)

When they are unable to buy luxuries

b)

When they are very rich

c)

When they can't afford food

d)

None of the answers is correct

4.

Due to living in a world of scarcity, it affects the decisions people make while _____________.

a)

Spending money

b)

Opportunity cost

c)

Losing everything

d)

Creating a monthly budget

5.

What is an important part of personal finance?   

a)

Buying luxuries

b)

Saving all the money

c)

Spending all the money

d)

Making decisions

6.

What does opportunity cost apply to other than money?

a)

It applies to time spent

b)

It applies only to money

c)

It only applies to time spent

d)

It doesn't apply to time

7.

Are people forced to make choices? Why?

a)

No, they are not

b)

Never

c)

Yes, they are

d)

Only sometimes

8.

What happens if you spend money to buy a new CD?  

a)

You spent your money on a basic need

b)

The amount you spend is money you could have saved

c)

You were able to save the money you spent

d)

None of the answers is correct

9.

How many people have a limited income?   

a)

All of the people

b)

Most of the people

c)

Nobody has limited income

d)

Everyone has limited income

10.

Sarah went to the store to buy Apples. She didn’t find any. She went to another store, she still didn’t find any. She kept asking and she knew that there is a shortage of Apples.

What do we call that?

a)

Saving

b)

Poverty

c)

Scarcity

d)

Opportunity cost

11.

Why is scarcity a part of life?

a)

Because it means that we can buy anything anytime

b)

Because there is always plenty of resources

c)

Because there will never be enough resources for everyone

d)

None of the answers is correct

12.

The scarcity of important resources, such as water, causes ______.

a)

Scarcity

b)

Poverty

c)

Saving

d)

Scarcity

13.

If you decide to study rather than watching television, what is the opportunity cost?

a)

The opportunity cost is sleeping

b)

There's no opportunity cost in this case

c)

The opportunity cost is studying

d)

The opportunity cost is watching television

14.

How does poverty affect people’s needs?

a)

people with limited income cannot afford food

b)

people with limited income can afford luxuries

c)

people with limited income can afford whatever they need

d)

people with limited income can easily afford their basic needs

15.

How do budgets help us? 

a)

Budgets do not help us with anything

b)

Budgets help us not to spend any money

c)

Budgets help us decide to buy luxuries only

d)

Budgets help us decide which expenses to pay first

16.

When can’t people afford food and important necessities?

a)

When they buy all their basic needs

b)

When they're rich

c)

When they suffer from poverty

d)

When they buy whatever luxuries they want

17.

What do Budgets help us decide?

a)

To save all our money and never spend

b)

Which expenses to pay first or whether to save or spend

c)

To decide to buy more luxuries

d)

None of the answers are correct

18.

What is a scarcity of resources or goods and services mean?  

a)

An excess of something

b)

A shortage

c)

It means availability

d)

It means shortage of luxuries only

19.

What does scarcity affect?

a)

The decisions we make when spending

b)

Everything except the decisions we make

c)

The luxuries that we want to buy

d)

None of the answers are correct

20.

What might a bakery have to decide between?  

a)

hiring a new worker and buying a new oven

b)

buying more luxuries than they need

c)

none of the answers is correct

d)

selling bread or saving it