How does opportunity cost affect people's wants and needs?
(1 point)
Responses
It changes the supply and demand of goods.
It changes the supply and demand of goods.
It requires them to make a choice.
It requires them to make a choice.
It requires them to be producers and consumers.
It requires them to be producers and consumers.
Opportunity cost does not impact wants and needs.
Opportunity cost does not impact wants and needs.
It requires them to make a choice.
When supply decreases and demand increases, what happens to the price of a good?
(1 point)
Responses
it increases
it increases
it stays the same
it stays the same
it decreases
it decreases
it is unaffected
it increases
Use the drop-down menu to complete the sentence.(1 point)
Increased competition between producers of a good may lead to
-
a decrease in profit
an increase in price
a drop in demand
a rise in taxes
an increase in price
Which type of economic system has the highest level of government control?
(1 point)
Responses
traditional economy
traditional economy
market economy
market economy
command economy
command economy
mixed economy
command economy
Which of the following is a feature of a good budget?
(1 point)
Responses
money reserved for saving
money reserved for saving
income that is less than its expenses
income that is less than its expenses
high use of credit
high use of credit
economic incentives
money reserved for saving
The correct response is: It requires them to make a choice.
Opportunity cost is the concept that making a choice means giving up an alternative choice. When people have limited resources and unlimited wants and needs, they must make choices on how to allocate their resources. This means that choosing to satisfy one want or need comes at the expense of satisfying another want or need.
For example, if someone has a limited amount of money and can choose to either buy a new pair of shoes or go on a vacation, they have to weigh the opportunity cost of choosing one over the other. If they choose to buy the shoes, the opportunity cost is giving up the vacation. Conversely, if they choose to go on the vacation, the opportunity cost is not having the new shoes.
Therefore, opportunity cost affects people's wants and needs by requiring them to make choices and consider the trade-offs involved in satisfying those wants and needs.