4. 4. He has over twenty years experience as Head of Economics at leading schools. Unformatted text preview: Welker’s Wikinomics practice activities 1.0 Introduction to Economics Scarcity, Opportunity Cost and PPC Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion.One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. The slope of a straight-line PPC is equal to the opportunity cost – specifically, the opportunity cost for the good measured on the horizontal axis in terms of the good measured on the vertical access . Taniesha wants to see if any of her teachers are at school early for extra help. They imagine creating their own businesses and brainstorm what they need to … Every time someone makes a choice, there are other things that are not chosen. Geoff Riley FRSA has been teaching Economics for over thirty years. Society’s wants are unlimited, but ALL resources are limited (scarcity). might outweigh the additional cost (the opportunity cost). Select the correct answer by clicking on the appropriate button. Economics: Opportunity Cost and Scarcity 1. 1. and services, productive resources, scarcity, opportunity cost, trade-offs, and price. Construct production possibilities curves using hypothetical data. Answers Included 2. This represents increasing opportunity cost. B)opportunity cost. 1. limited resources are used to satisfy unlimited wants. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Then, solve as many homework problems as possible in 30 seconds. Practice Questions 2 - Opportunity Cost and Trade Practice question with answers. Explain the economic problem of scarcity. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others. Apply scarcity and opportunity cost to a num-ber of everyday situations. Start studying Scarcity, Choice and Opportunity Cost. (D) This is an example of (constant / increasing / decreasing / zero) opportunity cost per unit for Good A. Law of increasing opportunity cost – when the production of a particular good increases, the opportunity cost of producing an additional unit rises. Materials - If you are working offline. The PPC is a economic framework that can be used to illustrate concepts of scarcity, choices and opportunity costs. After three hours, the additional benefit from staying an additional half-hour would likely be less than the additional cost. Scarcity, Opportunity Cost and PPC practice activity. Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion. C)marginal benefit. One copy of Planning the Prom, Activity 1, for each student. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. C)accounting cost. We live in a world of limited resources, but we seem to have unlimited wants. The opportunity cost represents the alternative given up when … 3. (C) The opportunity cost of increasing production of Good A from two units to three units is the loss of two unit(s) of Good B. Go over Activity 2. 3. Academic year. 2017/2018 Scarcity, Choice, and the Production Possibilities Curve Chapter Exam Instructions. Scarcity, Opportunity Cost and the Production Possibilities Curve. Due to scarcity, choices must be made. Objective SWBAT to analyze opportunity cost and socio- economic goals of the United States in order to practice answering multiple choice questions. Two class periods: Day One - Activity 1 Day Two - Activity 2 and Assessment. When discussing the answers, consider these points: (A) The law of increasing opportunity cost is hard for students to grasp. Scarcity, Opportunity Cost and PPC practice activity Welker Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion. As production of food increases, production of clothing declines and vice versa. Simple and easy worksheets to practice production possibility curve (PPC). This question does precisely that! These worksheets are designed to quickly understand the PPC which explains efficiency, scarcity, and opportunity cost. 2. 5. Grades: 9 th, 10 th, 11 th, 12 th. Quiz on the PPC, Opportunity Cost, and the Gains from Trade. D)substitution cost. Activity 2 pro-vides practice at determining absolute and compar-ative advantage. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. A PPC will help you see the opportunity cost of your decisions. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. 41) 42)The loss of the highest-valued alternative defines the concept of A)entrepreneurship. If opportunity cost is constant or increasing for one of the goods, it is constant or increasing respec-tively for both goods. It is important to learn to make good economic choices, or decisions. 5 Key Economic Assumptions. This is enough to give students practice without creating disengagement and works well for a college prep or AP level economics course. The concept of opportunity cost and associated tradeoffs may be illustrated with a picture. Choosing one option means the other option has to be forgone. TAGS: resources, scarcity. The next best thing that is not chosen is called a person’s opportunity cost. To describe the concept of the production possibilities frontier, assume that we live on an island that has only two cities (Lake and Desert), and two industries (cars and airplanes). The PPC is "bowed outward" (concave) from the origin. The students will then have the opportunity to practice the newly learned content through a simulation. Circle the opportunity cost. Subjects: Business, Economics . Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. Define the concept of opportunity cost. Benchmarks: Whenever a choice is made, something is […] Key Takeaways. Define the opportunity cost of a decision as the most valued discarded option; Analyze trade-offs involved in making spending decisions. Scarcity and opportunity cost represent two interlinking concepts in economics as companies must often choose among scarce resources. Define scarcity and opportunity cost. Joey and Taniesha arrive to school thirty minutes early. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Swinburne University of Technology. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. B)scarcity. What is the opportunity cost of moving from point D to point E? Objectives 1. Directions This quiz contains 15 multiple choice questions. 42) D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. SCARCITY AND OPPORTUNITY COST PRACTICE ACTIVITIES Directions: For each of the following examples, underline what is scarce. Learn vocabulary, terms, and more with flashcards, games, and other study tools. All the points on the PPC represent productive efficient levels of production. 1. Start studying Economics chapter 2 (Scarcity and opportunity costs). The basic economic problem is one rooted in both the natural world and in human greed. Opportunity cost is measured by the slope of the PPC (the change in along y-axis divided by the change along the x-axis). Every choice has a cost (a trade-off). Production Possibilities Curve – a graph that shows alternative ways to use an economy’s resources – does not show consumer satisfaction. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Try this: Do as many pushups as you can in 30 seconds and record the number. Welker. Time required. Joey wants to go to the corner store. What is the opportunity cost of moving from point A to point B? Using pushups on one axis and homework problems on the other, plot a straight line PPC. On which activity do you have … What is the opportunity cost of moving from point B to point C? Lesson Abstract: This quiz has around twelve questions of the same topic; choose the correct answer. For an individual, it may involve choosing the best from the choices available. Please use your own piece of paper to complete this practice activity. The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. University. Scarcity, Opportunity Cost, and Production Possibilities Curves The primary economic problem facing all individuals, families, businesses, and nations is the scarcity of resources: There simply are not enough resources to satisfy the unlimited wants for goods and services. Scarcity necessitates choice. (B) … Have a go! Product Possibilities Curve Practice . Your score is neither recorded nor transmitted to your instructor. Record that number. Scarcity is also referred to as "paucity." It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. Calculate the relative opportunity costs. Concepts: Opportunity Cost Scarcity Capital Goods Choice Consumer Goods Communism Content Standards and Benchmarks (1, 3 and 15): Standard 1: Productive resources are limited. D)opportunity cost. Apply the concept of opportunity cost to a pro-duction possibilities curve. This PDF download is great practice for students' understanding of the ins and outs of the PPC. High schoolers practice the economic concepts of scarcity and opportunity cost. Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice". Economic Principles (ECO10004) Uploaded by. Dayne Lee. in the process choices have to be made which leads to an opportunity cost. Students learn how to graph a PPC (aka a PPF), how opportunity cos . 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