Praxis 7815 Practice Question
After an economics lesson, a social studies teacher notices that students are having difficulty understanding the concept of opportunity cost. Which TWO of the following scenarios should the teacher consider sharing with the students as examples of opportunity cost during the next lesson?
Correct Answer: A,D
Rationale: Option A clearly illustrates opportunity cost, as Juan must forego purchasing a bicycle to spend his allowance on a video game, highlighting the trade-off between two choices. Option D also exemplifies opportunity cost; the farmer sacrifices the quicker returns from corn for the potentially higher profits of specialty crops, emphasizing the decision-making process involved in resource allocation.
In contrast, Option B does not present a personal choice with a trade-off, making it less relevant for illustrating opportunity cost. Option C describes a habitual purchase without a clear alternative being sacrificed, thus lacking the essence of opportunity cost. Lastly, Option E focuses on necessary purchases for a family, which does not emphasize the concept of choosing between competing options.
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