A PPC will help you see the opportunity cost of your decisions. Every choice has a cost (a trade-off). (D) This is an example of (constant / increasing / decreasing / zero) opportunity cost per unit for Good A. Activity 2 pro-vides practice at determining absolute and compar-ative advantage. Start studying Scarcity, Choice and Opportunity Cost. 3. One copy of Planning the Prom, Activity 1, for each student. Welker. Every time someone makes a choice, there are other things that are not chosen. Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion. Explain the economic problem of scarcity. Product Possibilities Curve Practice . Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others. Using pushups on one axis and homework problems on the other, plot a straight line PPC. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. These worksheets are designed to quickly understand the PPC which explains efficiency, scarcity, and opportunity cost. All the points on the PPC represent productive efficient levels of production. 41) 42)The loss of the highest-valued alternative defines the concept of A)entrepreneurship. Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice". If opportunity cost is constant or increasing for one of the goods, it is constant or increasing respec-tively for both goods. B)scarcity. Law of increasing opportunity cost – when the production of a particular good increases, the opportunity cost of producing an additional unit rises. Swinburne University of Technology. Their answers will be contributed as a group discussion. The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost. might outweigh the additional cost (the opportunity cost). Scarcity, Opportunity Cost and PPC practice activity. Circle the opportunity cost. 2. 42) This represents increasing opportunity cost. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. We live in a world of limited resources, but we seem to have unlimited wants. TAGS: resources, scarcity. 1. Scarcity is also referred to as "paucity." Go over Activity 2. 1. Key Takeaways. Grades: 9 th, 10 th, 11 th, 12 th. Concepts: Opportunity Cost Scarcity Capital Goods Choice Consumer Goods Communism Content Standards and Benchmarks (1, 3 and 15): Standard 1: Productive resources are limited. B)opportunity cost. C)marginal benefit. The concept of opportunity cost and associated tradeoffs may be illustrated with a picture. Simple and easy worksheets to practice production possibility curve (PPC). Production Possibilities Curve – a graph that shows alternative ways to use an economy’s resources – does not show consumer satisfaction. To describe the concept of the production possibilities frontier, assume that we live on an island that has only two cities (Lake and Desert), and two industries (cars and airplanes). Have a go! Scarcity, Opportunity Cost, and Production Possibilities Curves The primary economic problem facing all individuals, families, businesses, and nations is the scarcity of resources: There simply are not enough resources to satisfy the unlimited wants for goods and services. On which activity do you have … Apply scarcity and opportunity cost to a num-ber of everyday situations. and services, productive resources, scarcity, opportunity cost, trade-offs, and price. D)substitution cost. 2017/2018 Learn vocabulary, terms, and more with flashcards, games, and other study tools. Scarcity, Opportunity Cost and the Production Possibilities Curve. Academic year. The PPC is "bowed outward" (concave) from the origin. Then, solve as many homework problems as possible in 30 seconds. Define the opportunity cost of a decision as the most valued discarded option; Analyze trade-offs involved in making spending decisions. Try this: Do as many pushups as you can in 30 seconds and record the number. Joey wants to go to the corner store. When discussing the answers, consider these points: (A) The law of increasing opportunity cost is hard for students to grasp. After three hours, the additional benefit from staying an additional half-hour would likely be less than the additional cost. Geoff Riley FRSA has been teaching Economics for over thirty years. Lesson Abstract: This PDF download is great practice for students' understanding of the ins and outs of the PPC. It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. _____ Production Alternative_____ C)accounting cost. Calculate the relative opportunity costs. He has over twenty years experience as Head of Economics at leading schools. It is important to learn to make good economic choices, or decisions. Scarcity, Opportunity Cost and PPC practice activity Welker Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion. Practice Questions 2 - Opportunity Cost and Trade Practice question with answers. limited resources are used to satisfy unlimited wants. The basic economic problem is one rooted in both the natural world and in human greed. The slope of a straight-line PPC is equal to the opportunity cost – specifically, the opportunity cost for the good measured on the horizontal axis in terms of the good measured on the vertical access . Define the concept of opportunity cost. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. Quiz on the PPC, Opportunity Cost, and the Gains from Trade. The students will then have the opportunity to practice the newly learned content through a simulation. What is the opportunity cost of moving from point B to point C? What is the opportunity cost of moving from point D to point E? Society’s wants are unlimited, but ALL resources are limited (scarcity). In most cases, economic resources are not completely available at all times in unlimited numbers, so companies must make a choice about which resources to use during production. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Objectives 1. Select the correct answer by clicking on the appropriate button. The PPC is a economic framework that can be used to illustrate concepts of scarcity, choices and opportunity costs. Dayne Lee. As production of food increases, production of clothing declines and vice versa. 4. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. 5 Key Economic Assumptions. in the process choices have to be made which leads to an opportunity cost. This is enough to give students practice without creating disengagement and works well for a college prep or AP level economics course. Students learn how to graph a PPC (aka a PPF), how opportunity cos . Define scarcity and opportunity cost. Objective SWBAT to analyze opportunity cost and socio- economic goals of the United States in order to practice answering multiple choice questions. The next best thing that is not chosen is called a person’s opportunity cost. (C) The opportunity cost of increasing production of Good A from two units to three units is the loss of two unit(s) of Good B. This quiz has around twelve questions of the same topic; choose the correct answer. D)opportunity cost. Economic Principles (ECO10004) Uploaded by. Benchmarks: Whenever a choice is made, something is […] Scarcity, Choice, and the Production Possibilities Curve Chapter Exam Instructions. Unformatted text preview: Welker’s Wikinomics practice activities 1.0 Introduction to Economics Scarcity, Opportunity Cost and PPC Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion.One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. 4. 3. Learn vocabulary, terms, and more with flashcards, games, and other study tools. D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. Start studying Economics chapter 2 (Scarcity and opportunity costs). This question does precisely that! Time required. 1. Directions This quiz contains 15 multiple choice questions. 5. Apply the concept of opportunity cost to a pro-duction possibilities curve. Materials - If you are working offline. Two class periods: Day One - Activity 1 Day Two - Activity 2 and Assessment. Construct production possibilities curves using hypothetical data. SCARCITY AND OPPORTUNITY COST PRACTICE ACTIVITIES Directions: For each of the following examples, underline what is scarce. Subjects: Business, Economics . Choosing one option means the other option has to be forgone. Please use your own piece of paper to complete this practice activity. Due to scarcity, choices must be made. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. What is the opportunity cost of moving from point A to point B? 2. For an individual, it may involve choosing the best from the choices available. Record that number. [3 marks] Three points to be covered: Explanation could include: there are limited/finite resources and unlimited wants. Scarcity and opportunity cost represent two interlinking concepts in economics as companies must often choose among scarce resources. Taniesha wants to see if any of her teachers are at school early for extra help. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Economics: Opportunity Cost and Scarcity 1. Course. Choose your answers to the questions and click 'Next' to see the next set of questions. 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