Economic Choices — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. Mia has $2. She can buy a juice OR a pretzel, not both. She picks juice. What did she give up?
A) The pretzel
B) Her $2
C) The juice
D) A sandwich
Opportunity cost is the next best thing you give up. Mia gave up the pretzel when she chose juice.
2. After school Leo can read OR play outside, but only one. He reads. What is his opportunity cost?
A) His homework
B) Playing outside
C) Reading
D) Dinner time
Leo picked reading, so playing outside is what he gave up, making it his opportunity cost.
3. Ava has one ticket. She can ride the Ferris wheel OR the carousel. She rides the carousel. What did she give up?
A) The ticket
B) The popcorn
C) Ferris wheel ride
D) Her coat
Ava chose the carousel, so the Ferris wheel ride is the opportunity cost of her choice.
4. Sam has time for ONE activity: soccer or a puzzle. He picks soccer. What is the opportunity cost?
A) The soccer ball
B) His shoes
C) The field
D) Doing the puzzle
When Sam chose soccer, he gave up doing the puzzle, which is his opportunity cost.
Part B: Fill in the Blank
Write the correct answer on each line.
1. The thing you give up when you choose is called opportunity cost.
Opportunity cost is the value of the next best choice you did not pick.
2. Every choice has a trade-off because you cannot pick both.
Every choice means giving up another option, which is the trade-off part of deciding.
3. If you pick apples over grapes, the grapes are your opportunity cost.
Choosing apples means giving up grapes, so grapes become the opportunity cost of that choice.
4. When money or time is small, choices become more important.
When you have less, each choice matters more because you cannot easily try again later.
5. Thinking before you pick helps you make a good decision.
Thinking about what you gain and give up helps you make wise decisions every day.