Scarcity Tradeoff and Opportunity Cost

In Economics, Trade-off and Opportunity Cost mean the same thing.

• True!

• False!

What should be the most important factor considered when you make a decision?

• the Trade-offs

• the Opportunity Cost

• the lost opportunities

• the opinions of others

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Analyses

• Investments

A Trade-off is

• a purchase in a marketplace.

• an alternative that we sacrifice when we make a decision.

• any good or service a consumer needs.

• a factor of production.

What is the most basic problem of economics?

• scarcity

• productivity

• money

• resources

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

What name is given to the value of the next best alternative that you give up when you make a decision?

• Trade-offs

• Opportunity cost

• Lost opportunities

• Options

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