decisionmaking and oportunity cost quiz

Question 1

PACED decisionmaking model

Answer 1

define the Problem
list the Alternatives
determine the Criteria
Evaluate the alternatives
make the Decision

Question 2

define the problem

Answer 2

why must you make a choice?

Question 3

list the alternatives

Answer 3

what are your possible options?

Question 4

determine the criteria

Answer 4

what standards are important to you?

Question 5

evaluate the alternatives

Answer 5

how well does each alternative meet each criterion?

Question 6

make the decision

Answer 6

which option has the most favorable trade-offs?

Question 7

scarcity

Answer 7

the condition that exists because there are not enough resources to produce everyone’s wants

Question 8

opportunity cost

Answer 8

the second-best alternative you give up when you make a choice (not all of the alternatives not chosen)

Question 9

wealth vs earning money (income)

Answer 9

wealth measures the amount of valuable economic goods accumulated at a given point in time; income/earning money measures the amount of money (or goods) obtained over a given interval of time

Question 10

earning ability compared to education

Answer 10

an higher education can lead to a higher payment