Trade-Offs and Opportunity Cost

Our wants are always greater than our resources.

• True

• False

Economics is the study of money and how to get rich.

• True

• False

Economics is the study of people and how they make decisions.

• True

• False

Every decision you make has a cost.

• True

• False

When you make a choice, all the options that you have are called...

• Trade-offs

• opportunity cost

• lost opportunities

• options

What name is given to the most important item you give up when you make a decision?

• Trade-offs

• Opportunity cost

• Lost opportunities

• Options

Opportunity cost can also be called the ____ of your decision.

• Cost

• Reward

• Evaluation

• Lost opportunity

Juan came up with the following prioritize (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

Juan came up with the following prioritize (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 is the opportunity cost 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

Juan came up with the following prioritize (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

An economist would say that the economic cost of Juan going to work was...

• Going to work

• Going to a football game

• Going to a friend's house

• Going home and to sleep