Types of Costs
Mark makes a $500 car payment each month.
Fixed
People trading and bartering would be an example of this economic system
Traditional Economy
You choose to go to the movies rather than studying for a test.
Studying
At Christmas, Elizabeth spent $300 on presents for her family.
Irregular
Economic systems are created to satisfy people's what?
Wants, desires, etc.
You only have enough money to either go to the basketball game or buy a milkshake. You decide to go the game.
Sarah normally pays $50/month for her cell phone plan. However, some months she exceeds her data plan and pays more.
Variable
The United State is an example of this economic system.
Market Economy
An opportunity cost is defined as the next best use of your _________ & ________
Time & Money
Paula pays $75 for skating lessons each month.
Fixed
Karl Marx created communism. Communism would be popular in which economic system.
Command Economy
You choose to spend money on eating out. What is a potential opportunity cost?
Answers will vary
Dustin usually cuts his own hair. However, this time he decided to go to a hair dresser and paid $25 for a haircut.
Irregular
Adam Smith created the concept of the "invisible hand" which would influence which economic system.
Market Economy
You spend $500 of gifts for your family. What is an example of an opportunity cost?
Answers will vary