A popular bakery has only a few ingredients left to make their product. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?
A.
Muffins
B.
Cookies
2.
The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their backyard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision?
A.
Vacation
B.
Swimming Pool
3.
Emelia has been invited to a sleepover at Cloe’s house for this Saturday. Emelia has tickets to see her favourite band in concert the same night. She decides to give the tickets to her sister and go to Chloe's house. What is the opportunity cost of her decision?
A.
Seeing her favourite band
B.
Spending time at her friend's house
4.
Which of the following is an opportunity cost of using farmland to allow animals to graze?
A.
The cost of animal feed
B.
The price that hte animals can be sold for
C.
The use of the land to grow crops
D.
The cost of preparing the land for grazing
5.
Which of the following is an example of opportunity cost as applied to consumers?
A.
The cost of an item bought regularly
B.
The ability to buy more when prices are lower
C.
The decision to buy a book instead of a toy
D.
The cost of a present bought for a friend
E.
6.
Which of the following is NOT a decision made by producers?
A.
Which goods or services to produce
B.
Whom to produce
C.
How to produce the goods or services
D.
How much of the good or service will be bought
7.
Why must a government consider the opportunity cost of spending decisions?
A.
To get the best value for money
B.
Because the money comes from taxation
C.
Because a choice must be made between alternative uses
Crear
