Opportunity Cost Answers

Give an example of a society trade-off.

Define the phrase “Thinking at the Margin.”

Tom had to choose between spending $45 on a concert ticket or on groceries. Since he bought the groceries, we know that the opportunity cost of getting the ticket was __________.a. too highb. too lowc. irrelevantd. unknown

Give an example of a business trade-off.

When a decision is made, what two things is a decision maker considering?

Why are there trade-offs?

What does the phrase “Choosing is Refusing” mean?

The government is trying to maintain the infrastructure of the country, provide Social Security benefits to citizens, and regulate airline security. Congress has a budget for spending on all three of $1 billion. They decide to spend 45% on infrastructure, 45% on Social Security Benefits, and 10% on regulating airline security. Based on the information provided in this situation, which of the following best describes the opportunity cost? a. The citizens will not benefit from the spending because none of the programs directly affect them. c. However, Social Security benefits will suffer because a larger amount was spent on airline security. b. The government will be able to improve the road system, encouraging more people to drive on vacations. Social Security benefits will provide income for the elderly and disabled, allowing them to spend money, thus boosting the economy. Airline security might be slightly improved because of the ability to hire, but there will not be enough money to provide the latest equipment. d. There is no opportunity cost in this situation. Please select the best answer from the choices provided

What is opportunity cost?

If you had a choice between playing golf or going to the movies and you chose to go to the movies, what is the opportunity cost of your decision.