Art of Decision Making

2. You had three invitations for this weekend: go camping, go canoeing, and babysit your niece. You love the outdoors and do something physically active every chance you get. You chose to go canoeing. What was your opportunity cost? a. Camping b. Babysitting c. Babysitting and camping d. Canoeing

a. Camping

3. People can increase their ability to earn a higher wage rate by a. building skills that are scarce in the labor market. b. working more hours per week. c. reducing their time in education and jumping right into the labor market. d. working in a family business.

a. building skills that are scarce in the labor market.

6. The steps in the PACED decision making model are a. define the problem, act on the problem, choose possible solutions, and execute the decision. b. define the problem, list alternatives, state criteria, evaluate alternatives, and make a decision. c. define the problem, list alternatives, choose possible solutions, evaluate alternatives, and make a decision. d. prepare the model, align the model, choose possible solutions, evaluate alternatives, and make a decision

b. define the problem, list alternatives, state criteria, evaluate alternatives, and make a decision.

5. The condition of scarcity exists because a. the resources we need are in other parts of the world. b. there aren't enough resources to produce everyone's wants. c. resources are too expensive. d. the government manages resources and doesn't provide for everyone's wants.

b. there aren't enough resources to produce everyone's wants.

What might be on your list of alternatives when deciding what to do on a day off? a. Paint a house, do laundry, wash a car b. Fly to Paris, go to the park, go shopping c. Go to the park, see a movie, do laundry d. Become fluent in Spanish, learn Karate, play baseball

c. Go to the park, see a movie, do laundry

4. Opportunity cost is a. only experienced when you don't have enough money. b. everything that you give up when you make a choice. c. nonexistent because, eventually, we can have everything we want. d. the value of the next-best alternative when a decision is made.

d. the value of the next-best alternative when a decision is made.