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Opportunity Costs and Tradeoffs Practice

Remember that thinking like an economist means thinking about the tradeoffs and opportunity costs associated with every decision. Match the decision made by people and policy makers in Group 1 with the possible tradeoffs identified in Group 2.

Group 1:

  • Working late at a fast food restaurant on a school night
  • Savings
  • Funding NASA for space exploration to Mars
  • Attending college full time
  • Attending an affordable public college
  • Medicare for the elderly
  • New street lights on Main Street, USA

Group 2:

  • Medicaid for the needy
  • Studying for final exams
  • Sewer repairs on Main Street, USA
  • Funding a tax cut for the middle class
  • Spending
  • Working full time earning minimum wage

Answers:

  1. New Street lights on Main Street, USA // Sewer repairs on Main Street, USA

  2. Attending college full time // Working full time earning minimum wage

  3. Funding NASA for space exploration to Mars // Funding a tax cut for the middle class

  4. Working late at a fast food restaurant on a school night // Studying for final exams

  5. Medicare for the elderly // Medicaid for the needy

  6. Savings // Spending

  7. Attending an affordable public college // Attending an expensive private college