Explanation:
Let's go through each question one by one.
1. "These are the things we desire to have."
We are looking for the word that means things we want or desire.
- Opportunity Costs: This is the cost of giving up something when we choose one option over another.
- Goals: These are things we want to achieve.
- Wants: These are things we desire to have.
So, "wants" is the correct answer.
2. "Because of scarcity, people are forced to make ______ about how to use resources."
Scarcity means there is not enough of something for everyone.
Because of this, people have to decide what to do with limited resources.
- Opportunities: These are chances to do something, not decisions.
- Desires: These are what people want, not the act of deciding.
- Choices: This is the correct word. When resources are limited, people must make choices.
- Houses: This is not related.
So, "choices" is the correct answer.
3. "In economics a decision is free if:"
A free decision means there is no cost or trade-off.
But in economics, every decision has a cost — the next best alternative you give up. This is called opportunity cost.
- A: No products involved — This doesn’t mean the decision is free.
- B: No exchange with another person — Still, there could be a cost.
- C: No money involved — Money is not the only cost.
- D: A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.
This is correct. In economics, no decision is truly free because you always give up something.
4. "What is it called if we run out of coffee creamer?"
We are out of a product we use. This means we don’t have enough of it.
- Producer: This is someone who makes a product.
- Services: These are things like haircuts or repairs.
- Opportunity Cost: This is the cost of giving up something.
- Scarcity: This is when we don’t have enough of something.
Running out of coffee creamer means we have scarcity of it.
So, "scarcity" is the correct answer.
5. "A benefit is something good or helpful."
This is a definition.
- True: This statement is correct. A benefit is good or helpful.
- False: This would be wrong.
So, "true" is the correct answer.
6. "Scarcity is only a problem for poor people."
Scarcity means limited resources.
Everyone has limited time, money, and resources.
Rich people also face scarcity — they can’t have everything they want.
So, this statement is false.
Final Answer:
1. C
2. C
3. D
4. D
5. A
6. B
Parent Tip: Review the logic above to help your child master the concept of opportunity cost worksheet.
