A#1 Opportunity Costs

Benchmark 4-A:

analyze the ways individuals, households, businesses, governments and societies make decisions, are influenced by incentives (economic and intrinsic) and, the availability and use of scarce resources, and that their choices involve costs and varying ways of allocating:

#1 Standards with Test Item Specifications:

Analyze “opportunity costs” as a factor resulting from the process of decision making.

Specifications:

Identify opportunity cost in variety of contexts

Sample Question:

Vanessa has decided to attend college after high school rather than getting a job. What is her opportunity cost of attending college?

A. her tuition, books, and fees

B. wages she could have earned at a job*

C. her education gained by being in school

D. the sum of all decisions she made during that time