Opportunity Cost
What is the definition of Opportunity Cost
the loss of potential gain from other alternatives when one alternative is chosen.
True or False, every company has to have answers to the four factors of production in order to be successful
True
What does PPC Stand for?
Production Possibilities Curve
Define Scarcity
In economics, scarcity is the fundamental problem of having unlimited human wants and needs that exceed the limited resources available to satisfy them
How old is Mr. Beardsley
27
If you choose to go to the movies instead of studying, your opportunity cost is
Not being prepared for the test
What is the definition of land and an example
Natural Resources, Energy, water, lumber, oil
What is another name for a PPC
PPF (Production Possibility Frontier)
Define Wants and Needs
Needs: Necessary for survival
Want: Anything not necessary for survival
What other school did Mr. Beardsley teach at prior to Trumbull High
Jonathan Law
You are driving home from New York City and are hungry and low on gas but you only have $10. You stop and spend your money on gas.
Not having food.
What is the definition and example of labor
Work Effot; Workers, Wage
What does a dot inside the curve mean?
Ineffcient
Define TINSTAFL
There is no such thing as free lunch
Means no matter if something is free, someone somewhere is paying for it somehow
What classroom are we in?
A-18
Matt has two options this weekend. He could work at his job and earn $7 per hour for three hours, or he could go to a concert for that three hours. A ticket for the concert costs $30. What is the opportunity cost of going to the concert?
$51.
The decision cost a total of $51. $21 is what he would have made for working, plus the $30 he spent on the ticket
What is the definition and example of Capital
Things made to make other things; Tools, Factories, etc.
What does a dot outside the curve mean?
Unattainable with the given resources
What is a consumer?
Someone who demands goods or services
What was the score of the football game on friday?
Trumbull 12, NFA 3
You are calculating the opportunity cost of getting your college degree. At the university you chose, you will pay $15,000 each year in tuition, $2000 each year for textbooks, and $8000 per year for room and board. Before you left for college, your boss at your job offered you a permanent job earning $20,000 per year. Assume if you decided not to go to college, your parents would not let you live at home. What is the opportunity cost for four years of college?
These are costs you will pay because you chose to go to college.
Tuition:
$15,000/year × 4 years = $60,000
Textbooks:
$2,000/year × 4 years = $8,000
Room and board:
$8,000/year × 4 years = $32,000
But since your parents wouldn’t let you live at home even if you didn’t go to college, you’d still have to pay for housing/food either way — this is not part of the opportunity cost.
Total Explicit Costs (excluding room and board):
$60,000 + $8,000 = $68,000
This is the income you gave up by choosing to attend college instead of working.
Job offer: $20,000/year × 4 years = $80,000
Total Opportunity Cost of College:
= Explicit Costs (excluding room and board) + Implicit Costs
= $68,000 + $80,000 = $148,000
What is the Entrepreneur
Someone who puts 1-3 together (Land, Capital, Labor)
What does a PPC show?
different combos of goods and services that can be produced when all available resources are used.
All economic systems face three questions. What are they?
WHAT to produce
HOW to produce
FOR WHOM to produce
What's Mr. Beardsley's dog named?
Sullivan (Sully)