Opportunity Costs
If you spend your money on a movie, what is one possible opportunity cost?
The opportunity cost could be saving the money or buying something else.
Give one example of a scarce resource in everyday life.
Time, money, clean water, or food.
Why do people have to make choices every day?
Because resources like time and money are limited.
Saving money for a snack later today is which type of decision?
Short Term
True or False: Scarcity means there are unlimited resources.
False
What is the opportunity cost of sleeping late instead of going to school?
Learning time or education missed.
Why does scarcity exist even in rich countries?
Because resources are still limited while wants keep increasing
How are choices related to limited resources?
Limited resources mean you cannot have everything
Studying for a test tomorrow is an example of this type of decision.
Short Term
True or False: Every choice has an opportunity cost.
Why does every decision involve an opportunity cost?
Because choosing one option means giving up another.
How does scarcity affect prices in a market?
Scarcity usually causes prices to increase.
How do opportunity costs influence everyday choices people make?
People compare the benefits of each option and choose the best option in their opinion.
Buying a house as an investment is considered this type of decision?
Long term
True or False: Scarcity forces individuals and governments to make choices.
True.
Can opportunity cost ever be zero?
No, because choosing any option always means giving up at least one alternative use of time or resources.
Why can scarcity lead to competition for resources?
Because many people want limited resources.
A student chooses a lower-paying job that they enjoy over a higher-paying job they dislike. Explain why the student has likely to pick this choice.
The opportunity cost of the higher-paying job includes non-monetary costs like stress and unhappiness, which may be greater than the extra income.
Getting a part-time job to save for university is which type of decision?
Long-term decision.
True or False: Making no decision means there is no opportunity cost.
False.
Explain the opportunity cost of government spending money on the military instead of education.
The opportunity cost is better schools, healthcare, or public services that could have been funded.
Explain how scarcity affects both consumers and producers in an economy.
Consumers must choose what to buy, and producers must decide what to produce.
Analyze how opportunity cost and scarcity influence major life choices.
People must choose the best option by considering scarcity and what they give up.
Choosing to delay university for one year to work, knowing it will increase savings but postpone graduation, is this a short-term or long-term decision?
Long-term decision, because the choice affects lifetime earnings, career timing, and future opportunities beyond the one-year delay.
True or False: Opportunity cost includes every option you give up.
False (only the next best alternative).