Introduction to Economics

Opportunity Cost is 

• The alternatives you didn't choose
• The second best alternative 
• The negative aspects of an action
• The choice you made

Trade-offs

• Are the same as opportunity costs
• Can all be considered opportunity costs; it depends on an individual's choice
• Is only the next best alternative to the choice you made
• Weight the costs and benefits

All of the following are possible opportunity costs to the decision to go out for Pizza except

• You could have gone out for Chinese food

• Eaten at home instead

• You could have gone to your friends house

• You will have consumed a lot of food

All of the following are possible costs of your decision to go away to college except

• You will spend lots of time studying
• There may be a lot of social distractions
• You will become more educated
• You will be paying a lot of money

What is the difference between cost and opportunity cost?

• Cost refers to the negative aspects a decision could have whereas opportunity cost only refers to the alternative you didn't choose
• Opportunity cost refers to the negative aspects a decision could have whereas cost only refers to the alternative you didn't choose
• They are interchangeable (they mean the same thing but are different parts of speech)
• There are multiple opportunity costs to an individuals decision but only one cost

All of the following may be benefits of going to school except

• Getting an education
• Getting less sleep
• Seeing your friends
• Not sitting at home being bored

All of the following are trade-offs except

• A teenager decided to choose the smarties over the stickers, pencils, and tissues
• A teenager decides to study instead of sleeping or being on her phone
• Ford decides to make hybrids rather than SUVs
• McDonald's needs to decide how many hamburgers to buy

Which is true about scarcity?

• All resources are scarce but some are more scarce than others
• Scarcity will go away if people use their resources to their fullest potential
• Scarcity does not exist in places where people are rich
• Scarcity is not a reason why people have to make economic decisions

Which statement is true

• Scarcity doesn't exist for everyone
• Nothing in life is free
• Rarely do we use economic thinking
• Sometimes there is no downside to a decision

The fact that it smells like dog food near the Purina Factory can be considered 

• An external cost to the public
• An external cost to the factory operators
• An external cost to everyone involved
• An external benefit to the factory operators