B)scarcity. 3) Have each group discuss the questions on the handout Setting up Your Island Economy and record their answers. C. Answers will vary. If this is the case, then the answer is simple – produce more goods and services! TIP Opportunity cost is a concept that you can use in analysing and evaluating a signi cant number of topics, e.g. B. Welker. Scarcity and opportunity cost In Activity 1.2, you may have worked out that money alone cannot solve the problem. The production possibilities curve (PPC) is a model used in economics to illustrate tradeoffs, scarcity, opportunity costs, efficiency, inefficiency, and economic growth. SCARCITY, CHOICE, AND OPPORTUNITY COST. lildevilrette. B. Scarcity forces us to make choices. What is the opportunity cost of moving from point B to point C? Enhance your familiarity with a key principle in economics, economic scarcity, through our quiz. Define: interest rate 2 3. Money price acts effectively to balance quantity supplied with quantity demanded, and to ration goods in markets. opportunity cost of producing one bushel of wheat is 1/2 of a radio. False. Opportunity Cost: Answer key : Consumer Behavior: Answer key : Supply and Demand - I: Answer key : Supply and Demand - II: Answer key : Test Bank - Chapter Three: Removed by publisher's request : Test Bank - Chapter Four: Removed by publisher's request : Welfare measures (with answer key) Practice problems for Midterm 2: Elasticity: Answer key : Test Bank - Chapter Six + taxes: … Society’s wants are unlimited, but ALL resources are limited (scarcity). Objective SWBAT to analyze opportunity cost and socio- economic goals of the United States in order to practice answering multiple choice questions. Base your answer only on the information above and on comparative-advantage considerations. Consumers would like to consume. The opportunity cost of an action is what you must give up when you make that choice. Producers would like to produce. Answers to Group Activity Response Sheet The eight items listed by each group will vary. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Introduction to Economics and the Operations of Markets - take the Yes/No challenge. Scarcity takes many forms. What is the opportunity cost of moving from point A to point B? Key Terms: scarcity trade-off: opportunity cost cost/benefit analysis: marginal: Content Standards: Standard 1: Students will understand that: Productive resources are limited. 5 Key Economic Assumptions. This resource also includes an answer key.This product includes:Drag-&-drop: match Every time someone makes a choice, there are other things that are not chosen. The marginal cost of the fourth ton per day is (A) $100. Another way to say this is: it is the value of the next best opportunity. Everyone’s goal is to make choices that maximize their satisfaction. We live in a world of limited resources, but we seem to have unlimited wants. Terms in this set (50) Economics . They will finish their chores sooner by specializing according to their comparative advantage. Scarcity, Opportunity Cost and the Production Possibilities Curve. STUDY. If backpacking to Machu Picchu is the best alternative to a cruise, then the opportunity cost of the cruise is the value to you of the backpacking trip. 3. At any moment in time, there is a finite amount of resources available. Lesson Abstract: Distribute copies of the warm-up activity. Scarcity and Opportunity Cost [Head Start in A-Level Economics] Learning Activities. Try this amazing Chapter 1 Section 2 Quiz (Opportunity Cost) quiz which has been attempted 2247 times by avid quiz takers. 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