Opportunity costs-threshold 1

Question 1

If there are two choices, either eat the red pill or the blue pill, what will the sacrifice be if I take the red pill

Answer 1

the sacrifice would be not taking the blue pill

Question 2

The more money you spend on games, the less ________ money you could put towards the stock.

Answer 2

Money

Question 3

The production or the consumption of one thing involves a ____________

sacrifice of alternatives

Answer 3

Sacrifice

Question 4

Your friends ask you to play football when you have an exam tomorrow

what is the opportunity cost of going to play footy

Answer 4

Not studying!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Question 5

What do you think opportunity costs mean?

Answer 5

The choice of production or consumption leads to a sacrifice in the next best alternative. The sacrifice in the next best alternative is called the opportunity cost.

Question 6

What is a different meaning of opportunity cost

hint: It’s literally in the book

Answer 6

Measures the cost of the activity in terms of the next best alternative forgone( that has passed )

Question 7

What do you think Rational choices mean?

Answer 7

When carrying out an activity, weigh the benefit with the opportunity cost in order to come out with the most successful objective

Question 8

I want to buy a red car or a blue car. The red car is less expensive but I don’t like the colour red. The blue car is more expensive but I like the colour blue. Weigh the benefit and the opportunity cost of each!!!!!!!!!!!!!!!!!!!!!!!!

Answer 8

• Benefits of taking the red car
• Cheaper
• Cheaper Opportunity cost

and I don’t like it.

-Benefits of taking the blue car

I like it/makes me happy

-Opportunity cost is greater -think of saving money

cars more expensive

Question 9

To make a rational decision you must weigh the_______ against the _______ to come out with a _________ Choice.

Answer 9

• Cost
• Benefit
• Rational

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Question 10

If I spend less money on something, is my opportunity cost high/low

Answer 10

low

Question 11

If I buy something cheap, my opportunity cost is low, why????

Answer 11

I am sacrificing less money to achieve that thing.

Question 12

Rational decision-making for a consumer involves choosing items that give you the _____ value of money.

Answer 12

Best.

Question 13

Consumers chose items based on??

Answer 13

The biggest benefit relative to the cost of the item

Question 14

If i see the same product that i like,

one for £10.00

One for £15.00

then why would I go for the £10.00

Answer 14

The biggest benefit is relative to the cost. same benefit, but lower cost.