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    @assignment 4-Scarcity and Opportunity Cost

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    Abhishek
    The document provides examples and scenarios to illustrate scarcity and opportunity cost. Students are asked to identify scarce resources, opportunity costs, and answer questions about government spending decisions. Specifically, the document asks students to: 1) Identify scarce resources and opportunity costs in spending examples. 2) Determine opportunity costs of government spending on services like education, infrastructure, and disaster relief. 3) Explain whether benefits of spending on juvenile detention or land conservation outweigh associated costs. The assignment aims to teach students about key economic concepts of scarcity, choice, and trade-offs involved in allocating limited public funds.

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    @assignment 4-Scarcity and Opportunity Cost

    Uploaded by

    Abhishek
    1K views2 pages
    The document provides examples and scenarios to illustrate scarcity and opportunity cost. Students are asked to identify scarce resources, opportunity costs, and answer questions about government spending decisions. Specifically, the document asks students to: 1) Identify scarce resources and opportunity costs in spending examples. 2) Determine opportunity costs of government spending on services like education, infrastructure, and disaster relief. 3) Explain whether benefits of spending on juvenile detention or land conservation outweigh associated costs. The assignment aims to teach students about key economic concepts of scarcity, choice, and trade-offs involved in allocating limited public funds.

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    @Assignment 4-Scarcity and Opportunity cost

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    The document provides examples and scenarios to illustrate scarcity and opportunity cost. Students are asked to identify scarce resources, opportunity costs, and answer questions about government spending decisions. Specifically, the document asks students to: 1) Identify scarce resources and opportunity costs in spending examples. 2) Determine opportunity costs of government spending on services like education, infrastructure, and disaster relief. 3) Explain whether benefits of spending on juvenile detention or land conservation outweigh associated costs. The assignment aims to teach students about key economic concepts of scarcity, choice, and trade-offs involved in allocating limited public funds.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    @assignment 4-Scarcity and Opportunity Cost

    Uploaded by

    Abhishek
    The document provides examples and scenarios to illustrate scarcity and opportunity cost. Students are asked to identify scarce resources, opportunity costs, and answer questions about government spending decisions. Specifically, the document asks students to: 1) Identify scarce resources and opportunity costs in spending examples. 2) Determine opportunity costs of government spending on services like education, infrastructure, and disaster relief. 3) Explain whether benefits of spending on juvenile detention or land conservation outweigh associated costs. The assignment aims to teach students about key economic concepts of scarcity, choice, and trade-offs involved in allocating limited public funds.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Name: ______________________________________

    ASSIGNMENT 4-SCARCITY AND OPPORTUNITY COST


    Directions: For each of the following examples, underline what is scarce. Circle the opportunity cost.

    1. Joey and Taniesha arrive to school thirty minutes early. Joey wants to go to the corner store.
    Taniesha wants to see if any of her teachers are at school early for extra help. They decide to go
    up to extra help instead of going to the corner store.

    2. Davonte has $150.00 to spend at the mall. He decides to buy a pair of New Balance sneakers
    instead of saving the money in his bank account.

    3. The Maryland General Assembly has $1 million to spend in designing the upcoming budget. State
    legislators decide to spend most of that money on new curriculum to be used in schools, rather than
    restoring vacant homes.

    Directions: For each of the following scenarios, identify the opportunity cost by circling the correct
    choice.

    4. A city government decides to spend money on new stoplights instead of new textbooks for schools.

    What is the opportunity cost of this decision?

    Protecting the safety of citizens Promoting the education of citizens

    5. A teacher decides to spend time grading homework assignments instead of making phone calls to
    parents.

    What is the opportunity cost of this decision?

    Giving students feedback Communicating with the families of students

    6. The United States Congress spends $3.2 million on supporting our army, navy, marines, and
    coast guard instead of on public assistance programs.

    What is the opportunity cost of this decision?

    Our country’s national security Ensuring the welfare of all citizens

    Directions: Answer each of the following scenarios by writing the letter of the correct multiple‐choice
    question on the line.
    _________7. The governor of Maryland chose _________8. A local government has a limited
    to cut spending on road construction in order amount of money to spend. It decides to spend
    to increase spending for school construction. the money to support local businesses instead
    of to remove trash from unused buildings and
    Which economic principle is best demonstrated vacant lots.
    by this decision?
    Which of these is the opportunity cost of
    A. economic freedom this decision?
    B. opportunity cost
    C.price controls A. tax revenue
    D. supply and demand B. jobs for local residents
    C.a clean environment
    D. profits for business owners
    Directions: Read the passages below. Then, answer the short answer questions that follow.

    Read:
    In 2002, the Maryland General Assembly voted to purchase undeveloped land on the Chesapeake Bay before
    a construction company could purchase it. The state plans to use the land as a park for recreational activities
    instead of letting it become developed.

    9. Describe the opportunity cost of the purchase.


    _____________________________________________________________________________________________
    _____________________________________________________________________________________________

    10.Do you think that it is beneficial for the government to buy underdeveloped land? Explain.
    _____________________________________________________________________________________________
    _____________________________________________________________________________________________

    Read:
    In 2009, Governor O’Malley proposed that several billion dollars be made available to create a new juvenile
    detention center in Maryland. With that money, he could have employed every high school student in Baltimore
    City for a year.

    11. Describe the opportunity cost of the purchase.


    _____________________________________________________________________________________________
    _____________________________________________________________________________________________

    12. Do the benefits of O’Malley’s proposal outweigh the costs? Explain.


    _____________________________________________________________________________________________
    _____________________________________________________________________________________________

    Read:
    In 2005, the state government of Louisiana had to spend money cleaning up after Hurricane Katrina. This
    meant that other services had to be cut from the state budget.

    11. Describe the opportunity cost of the purchase. Be specific about what “other services” might include.
    _____________________________________________________________________________________________
    _____________________________________________________________________________________________

    12. Explain how scarcity affects the state government’s decision making.
    _____________________________________________________________________________________________
    _____________________________________________________________________________________________

    13. Which of the following scenarios would illustrate the principle of opportunity cost?

    a) a boy has only three dollars to spend when going to the mall b) Congress reviews its annual budget c)
    Governor O’Malley spends money on crime prevention rather than the environment d) A lobbyist persuades
    Congressmen to support new legislation

    14. A school district has a limited amount of money to spend. They decide to spend money fixing the school
    buildings rather than providing new textbooks. Which of the following is the opportunity cost of this
    decision?

    a) new textbooks b) new school buildings c) increased transportation between schools d) new school roofs

    15. What is the opportunity cost for state governments that spend state money during natural disasters?

    a) main highways between states may be blocked b) prices for snow removal equipment may increase c)
    other services offered by the states may have to be cut d) state governments may receive additional highway
    funds

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