Understanding Opportunity Cost
This worksheet helps 8th-grade students understand the concept of opportunity cost through various question types.
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Understanding Opportunity Cost
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Read each question carefully and answer to the best of your ability. Remember that opportunity cost is the value of the next best alternative that you did not choose.
1. What is the definition of opportunity cost?
The total cost of all alternatives.
The money spent on a choice.
The value of the next best alternative given up when a choice is made.
The benefit gained from a choice.
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 enjoyment of going to the movies.
The new book you bought.
Having $10 less.
1. Opportunity cost arises because resources are and human wants are .
2. Every economic involves an opportunity cost.
3. The concept of opportunity cost helps individuals and societies make more decisions.
1. Opportunity cost only applies to financial decisions.
True
False
2. When you make a choice, you always gain something and give up something else.
True
False
1. Describe a time you made a choice and experienced an opportunity cost. What was the choice, and what was the opportunity cost?