Social Studies: Economics: Opportunity Cost and Trade-Offs Worksheet

Question 1

Maya has $20. She can buy a new book or save the money for a school trip. She chooses to buy the book. What is her opportunity cost?

Accepted Answer

Maya's opportunity cost is the chance to put the $20 toward the school trip, because that is the best alternative she gave up when she bought the book.

Question 2

A city has enough money to build either a small skate park or repair playground equipment at one park. The city chooses to repair the playground equipment. Identify one trade-off in this decision.

Accepted Answer

One trade-off is that the city improves safety and usefulness at the playground, but it gives up the chance to build a new skate park for skateboarders.

Question 3

Explain the difference between scarcity and opportunity cost using a school example.

Accepted Answer

Scarcity means there are limited resources, such as only one hour of study time. Opportunity cost is what is given up, such as missing basketball practice when choosing to study for a test.

Question 4

Jordan has two hours after school. He can practice soccer, work on a science project, or play video games. He decides that working on the science project is his best option and soccer practice is his second-best option. What is the opportunity cost of working on the project?

Accepted Answer

The opportunity cost is practicing soccer, because it is the next best alternative Jordan gave up when he chose to work on the science project.

Question 5

A farmer can use a field to grow corn or soybeans. Corn is expected to earn $8,000, and soybeans are expected to earn $6,500. If the farmer chooses corn, what is the opportunity cost in dollars?

Accepted Answer

The opportunity cost is $6,500, because that is the income the farmer gives up by not growing soybeans.

Question 6

A school cafeteria can add either a salad bar or a smoothie machine, but not both. List one possible benefit and one possible cost of choosing the salad bar.

Accepted Answer

A possible benefit of choosing the salad bar is that students have more healthy food options. A possible cost is that the school gives up the chance to offer smoothies.

Question 7

Tanya is deciding whether to spend Saturday earning $45 babysitting or going to a free concert with friends. She chooses the concert. What is the opportunity cost of her choice?

Accepted Answer

The opportunity cost is the $45 she could have earned babysitting, because that is the value of the best alternative she gave up.

Question 8

A business owner has $10,000 to improve a store. She can buy faster checkout machines, redesign the window display, or hire a part-time worker. Explain why she must consider trade-offs.

Accepted Answer

She must consider trade-offs because her money is limited, so spending it on one improvement means she cannot use the same money for another improvement.

Question 9

Look at this choice: A state government can spend extra tax money on road repairs or on new computers for public schools. Create a sentence that identifies the opportunity cost if the government chooses road repairs.

Accepted Answer

If the government chooses road repairs, the opportunity cost is the new computers for public schools, because that is the alternative use of the money that is given up.

Question 10

Which choice shows opportunity cost most clearly? A student eats lunch. A student chooses between joining the art club and joining the robotics club. A student walks to class. Explain your answer.

Accepted Answer

The choice between joining the art club and joining the robotics club shows opportunity cost most clearly because the student must choose one activity and give up another valuable option.

Question 11

A family is planning a vacation with a budget of $900. They can choose a beach trip for $900 or a camping trip for $400 and save $500. If they choose the beach trip, what is one trade-off?

Accepted Answer

One trade-off is that the family gets the beach trip, but they give up the cheaper camping trip and the chance to save $500.

Question 12

A student council has $300. It can buy decorations for the dance or purchase new board games for the student lounge. The council chooses decorations. Write one sentence explaining the opportunity cost and one sentence explaining a benefit.

Accepted Answer

The opportunity cost is the new board games for the student lounge. A benefit is that the decorations may make the dance more enjoyable for students.

Question 13

Why do people face opportunity costs even when they are not spending money? Give an example.

Accepted Answer

People face opportunity costs because time and energy are limited, not just money. For example, if a student spends an hour watching a show, the opportunity cost might be an hour of studying or exercising.

Question 14

A company can make 1,000 bicycles or 500 scooters in a week using the same workers and machines. If it chooses to make bicycles, what does it give up?

Accepted Answer

The company gives up making 500 scooters that week, because the same workers and machines cannot be used to make both at the same time.

Question 15

Write a short paragraph about a real choice you might make this week. Identify the choice, the option you would give up, and whether the trade-off seems worth it.

Accepted Answer

A complete answer should describe a real choice, identify the next best option given up, and explain whether the benefit of the chosen option is worth the cost. For example, choosing to study for a math test instead of playing games may be worth it because doing well in school is important.

Social Studies: Economics: Opportunity Cost and Trade-Offs

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