WorksheetsScarcity and Opportunity costs
Total questions: 23
Worksheet time: 13mins
What is the definition of opportunity cost?
The chance that you will lose your money.
The next best alternative that you give up.
All of the choices you could have made but didn't.
The money you spend to buy something.
True/False: Human wants will always exceed available resources.
TRUE
FALSE
These are the things we desire to have.
Wants
Goals
Opportunity Costs
When "wants are greater than the resources available to satisfy them," it is called...
Scarcity
Needs
Opportunity Cost
None of these answers
Because of scarcity, people are forced to make _________ about how to use resources.
Choices
Opportunities
Houses
Desires
When you make a choice, you often have to give up other options...those things are called the...
Opportunity Cost
Missed Opportunities
Misused Resources
Scarce Options
Which one of the following is an opportunity cost?
You stay out late and your parents ground you.
You run a red light and you get a ticket.
You choose to give up math to study for history.
In a softball game, you miss the ball and strike out.
In economics a decision is free if:
There is no money involved.
There are no products involved.
There is no exchange with another person.
A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.
Scarcity is only a problem for poor people.
True
False
This Economics term refers to the things you use to create goods and services.
Resources
Materials
Wants
Scarcities
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.
Juan came up with the following priority (in order) list of what he could do Friday after school.
1) Go to work (what he did)
2) Go to a football game
3) Go to a friend's house
4) Go home and sleep
What are the Trade-offs of Juan's decision to go to work?
Go to work
Go to a football game
Go to a friend's house
Go home and sleep
A decision always involves
good or services
income
at least one alternatives
money
The opportunity cost of a good is
its price in dollars and cents.
the alternative goods forgone.
the price of alternative goods foregone.
none of the other options
Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?
fishing with a friend
going to a concert
Australian households moving away from coal-powered energy to solar-powered energy includes:
(i) the loss of jobs in the coal industry,
(ii) a cleaner environment,
(iii) reduced coal production.
What is the opportunity cost of Australian households moving?
(i), (ii) and (iii)
(ii) and (iii)
(iii) only
(i) and (iii)
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
20 whips
30 saddles
50 whips
60 saddles
A famous saying is, "There is no such thing as a free lunch." What does this statement mean?
Everything has a cost
Never accept a free lunch
You must always pay for lunch
None of these options
Who determines your opportunity cost?
Your friends
Your teachers
Your parents
You
You pick the following: 1) Candy. 2) Magazine. 3) Soda.
What is the opportunity cost of buying the candy bar?
Soda
Both the magazine and the soda
Magazine
Your cash
