1. A. To go to the beach I must give up studying for the exam. Studying is the opportunity
cost. If the beach were the opportunity cost, then I would be missing out on the
experience.
B. By getting a job after highschool, it causes going to college to be an opportunity cost.
C. Deciding to eat breakfast makes going to school early the opportunity cost because I
am deciding to do something else with my time.
D. Completing a portion of a group project is the opportunity cost when I decide to go to
the movies instead.
E. Going home early on a school night is the opportunity cost if one decides to go to a
party.
2. Scarcity happens to all wanted goods because they are all limited. Sometimes there is
not enough to satisfy everyone's wants or needs. It is determined by the market. If the
United States has less petroleum, then the price of its products will go up. If this keeps
happening, less people will buy gas and diesel because it is scarce.
