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An opportunity cost can BEST be described as
A. a tax.
B. a trade-off.
C. the value of the next best choice given up.
D. an investment.
C. the value of the next best choice given up.
Read the text explaining Maria's budget needs and answer the question. Maria receives a $20 allowance. She puts $8 in her piggy bank for a future trip. She spends $7 on a new notebook for school. She wants to donate the remaining money to the community garden. How much money does Maria have left to donate?
A. $20
B. $8
C. $7
D. $5
D. $5
An expense can BEST be described as
A. money spent to buy goods or services.
B. money earned by completing chores.
C. money saved in a bank account for the future.
D. the value of the choice you give up.
A. money spent to buy goods or services.
A pioneer family traveling west on the Oregon Trail has enough money to buy either an extra horse or a large supply of flour. They decide to buy the extra horse to help pull their heavy wagon. What is the family's opportunity cost?
A. the heavy wagon
B. the extra horse
C. the large supply of flour
D. the money spent on the horse
C. the large supply of flour
A settler in California travels to a general store to buy supplies. He has a small amount of gold to spend, but can only afford to buy beans or mining tools. He buys the tools because he thinks they will help him find more gold. What is the settler's opportunity cost?
A. having beans for dinner
B. the chance to find gold
C. the time he spent at the store
D. the gold he spent on the tools
A. having beans for dinner
Read the text explaining Tyler's budget needs and answer the question. Tyler receives a $12 allowance each week. He puts $4 in his bank to save. He donates $2 to his school's fundraiser. He wants to spend the remaining money on trading cards.
How much money does Tyler have left to spend?
A. $12
B. $8
C. $6
D. $4
C. $6
A colonial tradesman has a small block of silver. He can use it to craft a teapot or a set of spoons. He believes the teapot will sell for a higher price, so he makes the teapot. What is his opportunity cost?
A. the block of silver
B. the set of spoons
C. the teapot
D. the higher price
B. the set of spoons
Jackson is creating a personal budget. He earns $40 from his part-time job. He wants to save exactly half of his income. He plans to spend $10 on a movie and donate the rest to a local food bank.
Which budget BEST describes Jackson's plan?
A. Income: $40 | Savings: $40 | Spending: $0 | Donating: $0
B. Income: $40 | Savings: $20 | Spending: $10 | Donating: $10
C. Income: $40 | Savings: $10 | Spending: $10 | Donating: $20
D. Income: $40 | Savings: $20 | Spending: $20 | Donating: $0
B. Income: $40 | Savings: $20 | Spending: $10 | Donating: $10
A factory owner in the 1800s has enough money to buy one new machine or to hire three new workers. He decides to buy the new machine because it works faster. What is his opportunity cost?
A. the new machine
B. hiring three new workers
C. the money spent on the machine
D. the factory building
B. hiring three new workers
Income can BEST be described as
A. money given to a charity.
B. money earned from working or providing a service.
C. the cost of a good or service at the store.
D. the next best choice given up.
B. money earned from working or providing a service.
Read the text explaining Sarah's budget needs and answer the question. Sarah earns $15 walking dogs in her neighborhood. She decides to save $5 to buy a new bicycle helmet later. She wants to use the rest of the money to buy a treat at the bakery and to donate to a local library. Sarah decides to spend and donate the same amount of money.
Which budget BEST fits Sarah's needs?
A. Income: $15 | Savings: $5 | Spending: $10 | Donating: $0
B. Income: $15 | Savings: $5 | Spending: $5 | Donating: $5
C. Income: $15 | Savings: $10 | Spending: $5 | Donating: $0
D. Income: $10 | Savings: $5 | Spending: $2 | Donating: $3
B. Income: $15 | Savings: $5 | Spending: $5 | Donating: $5
A miner during the 1849 Gold Rush has enough money to buy either a sturdier pickaxe or a warmer coat for the winter. He buys the coat because the mountains are very cold. What is the miner's opportunity cost?
A. the warmer coat
B. the cold winter
C. the sturdier pickaxe
D. the money spent on the coat
C. the sturdier pickaxe
David earns $30 by helping his parents with yard work. He puts $10 in a savings account at the bank so he can buy a new video game later. He plans to use the rest of the money to buy snacks and donate to a local animal shelter. David decides to spend and donate the same amount of money. Which budget BEST fits David's needs?
A. Income: $30 | Savings: $10 | Spending: $10 | Donating: $10
B. Income: $30 | Savings: $10 | Spending: $20 | Donating: $0
C. Income: $30 | Savings: $5 | Spending: $15 | Donating: $10
D. Income: $20 | Savings: $10 | Spending: $5 | Donating: $5
A. Income: $30 | Savings: $10 | Spending: $10 | Donating: $10
A colonist in the 1700s has a limited amount of animal fat. She can use it to either make soap for washing clothes or to make candles for light. She decides her family needs light more during the long winter nights, so she makes the candles. What is her opportunity cost?
A. the long winter nights
B. the candles for light
C. the animal fat
D. the soap for washing clothes
D. the soap for washing clothes
An inventor in the 19th century has time to work on only one project today. She can either build a new model of the telegraph or improve the design of the steam engine. She decides to work on the telegraph. What is her opportunity cost?
A. the new model of the telegraph
B. the time spent inventing
C. the materials used for the telegraph
D. improving the design of the steam engine
D. improving the design of the steam engine