Understanding Opportunity Cost
This worksheet helps 7th-grade students understand the concept of opportunity cost through various examples and exercises.
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Understanding Opportunity Cost
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Read each question carefully and answer to the best of your ability. This worksheet will help you understand the concept of opportunity cost.
1. What is opportunity cost?
The money you save by making a good decision.
The value of the next best alternative that you give up when you make a choice.
The total cost of all your choices.
The price of a product.
2. You have $10. You can either buy a new book or go to the movies. If you choose to buy the book, what is your opportunity cost?
The $10 you spent on the book.
The entertainment and experience of going to the movies.
The knowledge gained from reading the book.
Nothing, because you made a good choice.
1. Scarcity forces us to make , which always have an opportunity cost.
2. The opportunity cost is the value of the best alternative that was not chosen.
1. Describe a situation where you had to make a choice between two things. What was your choice, and what was the opportunity cost of that choice?
1. Every decision we make has an opportunity cost.
True
False
2. Opportunity cost only applies to financial decisions.
True
False