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The price at which goods or services are offered by a business to their customers is called: Selling price. Costs that must be paid regardless of how much of a good or service is produced. They do not change in the short term, regardless of output are called: Fixed costs. Costs that change based on the amount of goods and services produced: Variable costs. Rent, administrative costs, insurance, employee salary are examples of ..: Fixed costs. What is the equation for revenue: Price x Quantity. Which two of the following are variable costs: Water. What is meant by the term net profit: It is what is left over after all costs have been deducted. Raw materials: £100Rent: £200Interest on a bank loan £50Cost of packaging £30Total operational expenses: : £250

Tonya had a hard time deciding between the Big Burger and the Crispy Chicken sandwiches,her two favorites. She chose the chicken because she had more recently had a burger. Whatwas her opportunity cost: Big Burger. Jimmy went to a candy store. He really wanted chocolate nut clusters, jelly beans, and licorice.He only had enough money buy one of them. He can’t eat chocolate or nuts because of anallergy. He decided to buy some licorice. What was his opportunity cost: Jelly Beans. Mary was shopping in a clothing store. She had $100 to spend. She found three items sheliked: $99 for a pair of shoes, $98 for a jacket, and $96 for a dress. After over an hour ofshopping, she decided to borrow some shoes from her sister and to buy the jacket for $98. What was her opportunity cost: Dress. Joe was shopping for a truck. He has looked at similarly priced Ford, Chevrolet, Toyota, andRam models. After a lot of thought, he narrowed it down to either the Ford or the Chevrolet.He selected the Ford because he liked the interior a little better. What was his opportunitycost: Chevrolet. The city was building a new park. There was only enough money in the budget to includenew tennis courts, a wading pool, a music stage, or a parking lot. At the public hearing, manyof the people wanted more parking. City Council voted to build the music stage afternarrowing it down to either the stage or the wading pool. What was the city’s opportunitycost: wading pool. The use of the smallest amount of resources to produce the greatest amount of output. It is the main reason why scarcity is good. : Efficiency. What is the most basic problem of economics: Scarcity. How do we satisfy the greatest number of needs and wants: Allocation. All the things we sacrifice to obtain another:

What is scarcity? : Not having enough resources . What is opportunity cost: The last you would give up to make a choice. A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision: muffins . The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their backyard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision: vacation . Emelia has been invited to a sleepover at Chloe’s house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe’s house. What is the opportunity cost of her decision: seeing her favorite band . Max is studying for his spelling test. Unfortunately, his favorite TV program is on right now. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision: watching TV show. The local government for a community must decide what to do with the sales tax collected. They could build a new skate park or they could buy more computers for the public library. The officials decide to build a skate park. What is the opportunity cost of their decision: more computers . The economic problem is that: resources are limited and wants are unlimited.. The opportunity cost of a good is: the alternative goods forgone.. A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is : 50 whips. Because of scarcity, people are forced to make _________ about how to use resources: choices. What name is given to the value of the next best alternative that you give up when you make a decision: opportunity cost. You win a football match ticket that worth $100, but need to pay 25% tax. What is the opportunity cost if you choose to stay home and watching a TV show that you need to pay $20 rather than going to the football match: $95