Economic Systems Answers

Demonstrating opportunity cost is done through production

On a production possibility curve, data points that fall outside of the curve represent

One method for studying opportunity cost is to think in terms of

Which of the following are examples of limited resources on the part of consumers?

ABC

opportunity costsrevenueprofitresource costs

Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to assess whether the potted plants are a good idea. Study their chart:

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends and family. In the end, he decides to take the promotion.What is Ricardo’s opportunity cost?

Which of the following has the largest impact on opportunity cost?

Which of the following illustrates an opportunity cost?