Opportunity Cost Answers

Government and elected officials often seek information from the public to

limit the number of decisions they will need to make.

explain the opportunity costs of a decision.

determine how much projects will cost.

better understand what different groups value.

Time spent working instead of doing something else is an .

explicit cost

implicit cost

The $20,000 down payment for the food truck is an .

explicit cost

implicit cost

Which statement best describes how opportunity costs affect consumer decisions?

Decisions create lost opportunities that affect future decisions.

Decisions create new opportunities that have no effect on future decisions.

Decisions based on scarce resources always lead to bad choices.

Decisions based on unlimited resources create opportunity costs.

Government policy decisions create opportunity costs when

resources spent on one issue cannot be used on another.

the benefits of a decision are greater than the cost.

the public places a low value on the expense of the decision.

unlimited resources are spent equally on all issues.

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