WorksheetsOpportunity Cost
Total questions: 70
Worksheet time: 1hrs 14mins
What is opportunity cost?
the value of the next best option that is not selected when a choice is made.
there is not enough of it.
things people make to earn money.
actions people do to earn money.
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
Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?
a trip to the beach
a trip to the mountains
Jason has been asked by his son to go ride 4-wheelers this weekend. His boss has asked him to work overtime and get paid double. Jason chooses to go ride 4-wheelers with his son. What is his opportunity cost?
ride 4-wheelers with his son
work overtime for his boss
Ashton tried our for cheer leading and made the varsity team. She can choose to cheer for football or basketball. She chooses to cheer for football, what is her opportunity cost?
to cheer for football
to cheer for basketball
Aiken loves riding horses and wants to compete at the horse show. His favorite horse to ride is Frappe. If he rides Frappe at the show, he can only compete in the lope class and trail class. If he rides SeeNo at the show he can compete in walk/jog class and trail class. He chooses to ride SeeNo. What is his opportunity cost?
ride Frappe in the lope class and trail class
ride SeeNo in the walk/jog class and trail class
Lydia brought a salad for lunch today. Michelle is ordering pizza and asks Lydia is she would like to order. Lydia decides to eat her salad, what is her opportunity cost?
salad
pizza
Jaleigh is going shopping with her Aunt and has $20. She wants to buy a pair of jeans and a shirt. The jeans are $15 and the shirt is $20. Jaleigh decides to buy the jeans, what is her opportunity cost?
jeans
shirt
Kason goes to the store to get a snack. He wants chips and a drink but he only has $2.00. The chips are $1.00 and the drink is $1.50 so he doesn't have enough to buy both. He buys the drink, what is his opportunity cost?
drink
chips
Josh's birthday is coming up. He wants a pair of beats headphones and a PS4. His Mom says he can only get one item. He chooses the PS4, what is his opportunity cost?
beats headphones
PS4
A business chooses the alternative that will earn the greatest (a) .
You have to choose between a chocolate bar or an ice cream cone. You choose the ice cream cone. What is the opportunity cost?
chocolate bar
ice cream come
You have to choose between a beach holiday or fixing the roof. You choose the beach holiday. What is the opportunity cost?
beach holiday
fixing the roof
You have to choose between getting a new t-shirt or going to the movies. You choose the t-shirt. What is the opportunity cost?
getting a new t-shirt
going to the movies
A doctor's office needs to decide if they want to buy a new computer or a new fax machine. They choose a new computer. What is the opportunity cost?
new computer
new fax machine
An ice cream shop needs to decide if they want to hire more workers or buy a new delivery van. They choose a new delivery van. What is the opportunity cost?
hire more workers
new delivery van
A local store needs to decide if they want to have an office party or give the money to the owner for more profit. They choose an office party. What is the opportunity cost?
office party
money for the owner for more profit
The government must decide if they should increase unemployment benefits or build new roads. They decide to increase unemployment benefits. What is the opportunity cost?
increase unemployment benefits
build new roads
The government must decide if they should buy more equipment for the military or hospitals. They decide to go with the hospitals. What is the opportunity cost?
military
hospitals
What is Opportunity Cost?
The item you didn't choose
The item you chose
What is Opportunity Cost?
What you lose by choosing something else
Losses from the sale of personal property
To estimate the price of an item
In your own words: What is Opportunity Cost?
(a)
Which is a good reason to spend money?
To purchase the new $300 Jordans
A new book
A new PS5
New toys
Which is the best reason to save money?
To buy Robux
To purchase a reliable car
Starting amount: $20
Cost: $8
What is your new total?
$12
$13
$11
$3
Starting amount: $200
Cost: $34
What is you new total?
$166
$234
$163
$267
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
Which of the following best summarizes the concept of scarcity?
Life is not fair.
Life is so hard.
You can't have everything you want.
People are selfish.
Scarcity exists because
resources are insufficient to satisfy people's wants
resources are limited
people have wants
people aren't willing to share their wealth
When does scarcity occur?
When prices are too high.
Always.
When you can't find the product you want.
When others have more than you.
Alternatives are always
new ways of accomplishing goals
better ways of accomplishing goals
worse ways of accomplishing goals
different ways of accomplishing goals
A budget is
a way to spend your money
a way to save money
a way you choose to allocate scarce resources
How do you find your net income, assuming your total income comes from working at a job?
Total expenses - gross wages
Total expenses+gross wages
Gross wages-taxes/deductions
Which of the following is free?
"Buy one, get one free" box of cereal
A T-shirt that you get for running a 10K race
A ticket a friend gives you to a rock concert
None of these are free
A choice always involves
good or services
income
at least two alternatives
money
A choice is free if
there is no exchange with another person
a decision is never free
there are no products involved
there is no money involved
When you make a choice, you face a(n)
opportunity cost
high cost
low cost
sunk cost
Which of the following is an opportunity cost?
You stay out late and your parents ground you
You choose to study math instead of history.
You run a red light and get a ticket
In a softball game, you strike out
Budgeting makes sense when
your wants exceed your resources
you are poor
you have a family
you want a lot of things
