Opportunity Cost & Decision Making

Identify the correct definition for the following term:

rationing

• Citizens are only allowed to purchase a certain amount of goods

• The cost associated with giving up one thing for another

• Redirecting resources from one source to another

• Using something close to what is actually desired

Identify the correct definition for the following term:

opportunity costs

• Citizens are only allowed to purchase a certain amount of goods

• The cost associated with giving up one thing for another

• Redirecting resources from one source to another

• Using something close to what is actually desired

Identify the correct definition for the following term:

reallocation

• Citizens are only allowed to purchase a certain amount of goods

• The cost associated with giving up one thing for another

• Redirecting resources from one source to another

• Using something close to what is actually desired

Identify an example of the following term:

reallocation

• During World War II, only a certain amount sugar & gasoline were allowed for purchase

• The citizens of the United States giving up certain goods, such as sugar, in exchange for freedom provided by the war

• Resources shifted from the citizens to the World War II effort

• Using margarine instead of butter

Identify the correct definition for the following term:

alternative

• Citizens are only allowed to purchase a certain amount of goods

• The cost associated with giving up one thing for another

• Redirecting resources from one source to another

• Using something close to what is actually desired

Identify an example of the following term:

alternative

• During World War II, only a certain amount sugar & gasoline were allowed for purchase

• The citizens of the United States giving up certain goods, such as sugar, in exchange for freedom provided by the war

• Resources shifted from the citizens to the World War II effort

• Using margarine instead of butter

Identify an example of the following term:

rationing

• During World War II, only a certain amount sugar & gasoline were allowed for purchase

• The citizens of the United States giving up certain goods, such as sugar, in exchange for freedom provided by the war

• Resources shifted from the citizens to the World War II effort

• Using margarine instead of butter

Identify an example of the following term:

opportunity costs

• During World War II, only a certain amount sugar & gasoline were allowed for purchase

• The citizens of the United States giving up certain goods, such as sugar, in exchange for freedom provided by the war

• Resources shifted from the citizens to the World War II effort

• Using margarine instead of butter

_______ happened during WWII when American citizens were only allowed to have certain amounts of specified goods.

• opportunity costs

• rationing

• reallocation

• alternative

Redirecting resources from one area to another is called _______.

• opportunity costs

• rationing

• reallocation

• alternative