Economics 9: Decision-making, Trade-off, and Opportunity Cost

Practice questions covering the concepts of scarcity, trade-offs, and opportunity cost as discussed in the Economics 9 lecture.

What is the definition of Decision-making in the context of economics?

The process of choosing the best option from various alternatives.

Why is it impossible for individuals to get everything they want, necessitating decision-making?

Because of Scarcity (Kakulangan) of resources.

What is a Trade-off?

The act of choosing one thing in exchange for other options, which involves sacrifice.

How is Opportunity Cost defined?

The most important thing or best alternative that is surrendered/sacrificed in every decision made.

True or False: All things sacrificed in a decision are considered opportunity costs.

False; only the most important sacrifice is considered the opportunity cost.

If you have $‑50$ and choose to buy Phone Load for research instead of Ice Cream, what is the Opportunity Cost?

The Ice Cream that was not purchased.

What represents the 'Trade-off' if a student chooses to study at night?

The time that could have been used for playing or sleeping.

Why is Opportunity Cost important for a family?

To ensure wise spending of the household budget.

What is the importance of Opportunity Cost for the government?

To ensure the correct allocation of public funds.

What is the purpose of creating a Decision–Opportunity Cost Table?

To serve as an output or tool for making smart choices.

What phrase summarizes the relationship between choice and sacrifice in the lecture?

Choice brings sacrifice.