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