Let's say Lucy doesn't enjoy dealing with numbers. d. another name for a... Factors such as BidBuy's feedback rating system that are valuable to the company's customers but which are not useful on other online auction sites are examples of A) first-mover advantages. Which of the following is true with regard to opportunity costs in the two countries? Suppose you have bought and paid for a ticket to see Lady Gaga in concert. What is the opportunity cost of 60 dozen orchids? Which of the following statements about opportunity costs is TRUE? a. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. Which of the following statements about opportunity cost is true? Opportunity cost is defined as the A. difference between the benefits from a choice and the costs of that choice. Explain the term __opportunity cost__, and give some examples. C)six units of soda. Tom just completed high school and is trying to determine whether to go to university for two years or directly to work. Have a go! The cost of tuition is $3,000 in textbooks are $100 You live with your famil... A self-employed computer repairman generated $75,000 in revenue last year. Micro Economics : Case study. nominal interest rate less the… a) II and III only. a. Restaurants, bars, and convenience stores are often located near college campuses. The opport... You are the manager of a medium-sized farm with 100 acres of workable land. Suppose a book costs $10 and takes 3 hours to read and a concert costs $20 and takes 3 hours. The unemployment rate in the United States typically has been lower than the unemployment rates in Canada and countries in Western Europe because _____. a) 1/4 of a unit of x. a. The below table shows their Production possibilities schedules, which describe various combinations of fishing... Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. She earns an extra $50, but her exam score is 15 points lower than it would have been had she stayed home and studied. Suppose your management professor has been offered a corporate job with a 30 percent pay increase. Us... Jane owns a dog whose barking annoys Jane's neighbor, John. Adam uses 8 hours to produce 1 computer and 2 hours to produce 1 smartphone. 0 washers, b. The private costs of … Suppose that Lo and Manuel can either run errands or wash dishes. C. an accounting cost. Four factors of production. III. Which of the following was relevant to this decision? After reviewing proposals, the city decide... A small country produces two goods: mp3 players and music downloads. The average consumer uses this product 100 hours per year and spends $500 doing so. Given the PPF illustrated, what is the opportunity cost of moving from B to A? Practice exam questions … Opportunity cost only measures direct monetary costs. How would one place a value on their leisure? a. In Snap each worker in a one-hour period can produce either 13.72 pounds of bananas or 7.48 pounds of sugar. If a firm offers to pay a worker $10 for each hour of leisure the worker gives up, the $10 implies the what? You have three options for the last $5 in your pocket: a cappuccino you value at $6, a smoothie you value at $7, and a frog. I. You were willing to pay up to $350 for this ticket, but it only cost you $100. What is her opportunity cost of 1 cake in terms of knitted sweaters? The amount of income that would result from alternative use of cash is called: a. differential income b. sunk cost C. differential revenue d. opportunity cost. In the U.S., it requires 20 labor hours to produce one bushel of wheat and 80 labor hours to produce one computer. b. the foregone earnings (... Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons. Give an example. How does Apple's decision change the opportunity cost of a download? In Malaysia, one worker can make 10 tons of rubber or 40 radios. Going to concerts and reading books take time and money. Not Answered. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. D. normal profits. D. only its expli... To make the best predictions about the decisions made by a firm, we should take account of a firm's A. implicit costs. For each location, the table has the labor hours required to produce one unit. C) "payments" for self-employed resources. The United States has a comparative advantage over China in the production of pants. Simon and Erica earned $50,000 per year each as lecturers. If you choose to play tennis on Monday morning and the next best alternative for use of your morning is studying, then a. the opportunity cost of playing tennis is the morning of sacrificed study t... Leland Manufacturing uses 10 units of Part Number KJ37 each month in the production of radar equipment. In January, in an attempt to commit to getting fit, I signed a year-long, binding contract at a local gym, agreeing to pay $40 per month in membership fees. The opportunity cost of a city using tax money to build a new stadium is a. the monetary cost of building the stadium. According to the table, what is the opportunity cost of producing one pair of red pants on Nantucket? B) whose family is extremely wealthy. $0 B. PPF and Increasing Opportunity Cost (MCQ Revision Questions) Practice exam questions. What are some of the opportunity costs of higher fuel prices? The hold-up problem means that: A) ex post a larger share of the surplus is claimed than ex ante agreed upon. Explain the other activity in some detail. Suppose the government auctions off permits to car and truck owners, with each permit allowing the user to emit five tons of carbon dioxide each year from her or his vehicle. Your opportunity cost of a gallon of milk is a. one dozen eggs. Discuss how to make decisions, based on opportunity cost. *a. Assume that the opportunity cost of producing a pair of pants in the United States is 2 pounds of rice, while in China, it is 5 pounds of rice. Comparative Advantage Wheat Cloth Great Britain 160 640 The United States 1,280 640 a. Correct answer: (C) when there is a tie between zero opportunity cost cells. B)three units of soda. I. c) Taking actions whenever the marginal benefit exceeds the marginal cost. If you spend your income on video games, you cannot spend … becomes worthless)! The benefit you gain by making a decision . This activity contains 10 questions. 8. Which costs may normally be ignored when determining whether to close a factory for a short period? The figure above shows the market for tiger shrimp. (a) efficiency; cost (b) waste; benefit (c)... What is one example of an opportunity cost of free higher education? Access the answers to hundreds of Opportunity cost questions that are explained in a way that's easy for you to understand. Which of the following is identical for both nations if they engage in free trade? A. Your options are to use the credit to buy the $3 pour-over, buy the $3 cortado, or let the credit expire. Karl's opportunity cost of... Use the Production Possibilities Curves for U.S. and Mexico to determine: i. Tommy's oppor... i. Winnie and Tigger both need to gather honey and also pick some berries. Opportunity cost accounts for alternative uses of resources such as time and money. What is the (opportunity) cost, in dollars, of purchasing the frog? Which of the following is most likely TRUE? The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. He has over twenty years experience as Head of Economics at leading schools. B) comprised entirely of variable costs. Imran is a dairy farmer and currently has revenues of $40,314 per month. Topic 2 Multiple Choice Questions All the following questions are from previous exams for Economics 103. True or false? Which of the following statements about opportunity costs is TRUE? Solution for The opportunity cost of holding money is the Multiple Choice nominal interest rate. Her annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. Explain whether the following statement is True or False. His objective is to maximize the savings he will have in the bank five years... Robinson and Crusoe live on a deserted island. 1 bread. For whom should the goods be produced? c. can be measured only when the decision involves ex... Two friends, Monica and Chandler, enjoy baking bread and making apple pies. These quizzes cover AP Microeconomics topics. economic depreciation IV. What is the definition of "opportunity cost"? The only costs associated with running the farm are fixed costs of $89,743 per year. Given the following opportunity loss function, determine the loss when 7,000 units are sold. Suppose that the benefit of owning the dog is worth $500 to have and that John bears a cost of $700 from the barking. An electrician quits her current job, which pays $40,000 per year. Here are three things you could do: a. Explain. The crops you grow from those seeds will sell for $250. 1. A. more schools B. more hospitals C. more food D. more military power. Aside from the money he enjoys both jobs equally. b. two dozen eggs. The opportunity cost of one more bushel of wheat is: a. decreasing as point B will be moved to point D. b. impossible to determine from the information given. A. According to the figure above, the opportunity cost of producing another computer is. If Shawn can produce donuts at a lower opportunity cost than Sue, then: a. Shawn has a comparative advantage in the production of donuts, b. The opportunity cost of using this building as office space for your own business is the aggregate value of all of the foregone alternative uses for the space. What is the opportunity cost in economics? Multiple Choice Questions: 1. The following table shows the possible combinations of the two products. The greatest use of our limited resources occurs when _____. You could also rent the land to another farmer... What is an opportunity cost, and why is the term important in economics? $4... Had cable TV prices stayed low, would satellite TV service have spread as fast? Can a country "over-invest" in capital? Earn Transferable Credit & Get your Degree. Identify the letter of the choice that best completes the statement or answers the question. b) the... Francesca has just completed her Master's degree and is considering pursuing doctoral (Ph.D.) studies in economics. You pay the college for your room and board. c. downward-sloping demand. c. 1 cheese. The opportunity cost of a decision is the next best foregone alternative. Suppose you have three options for the last $5 in your pocket: a cappuccino you value at $6, a smoothie you value at $7, and a frog. B. B) 8 units of X. As a result, a. a. the economic perspective. During production it emits sulphur which creates an external cost to the local community. Services, Working Scholars® Bringing Tuition-Free College to the Community. What do economists mean by "opportunity cost?" The opportunity cost of an item is (a) the number of hours needed to earn money to buy the item. College-age athletes who drop out of college to play professional sports: a) Are not rational decision-makers, b) Are well aware that the opportunity cost of attending college is very high, c) Are... Barb's aunt gave her $100 for her birthday with the condition that Barb buys herself something. The opportunity cost of seeing Leonard Cohen is equal to: 9. What is the opportunity cost of his decision? Assume interest rate of 3%. Danny can either mow 5 lawns or clean 25 windows in 5 hours. b. the sum of all opportunity costs confronting a consumer. Consider two areas that, A and B, that each can grow coffee and tea. They are duplicates of the questions found in the Topic sub-sections. Practice question with answers. Opportunity costs only measure direct out of pocket expenditures. Which of the following options is correct? Question: An Opportunity Cost: Multiple Choice Is An Unavoidable Cost Because It Remains The Same Regardless Of The Alternative Chosen Requires A Current Outlay Of Cash. How do opportunity costs fit into the concept of problem-solving, decision making, and judging? A. 1. Who has the absolute advantage in making chocolate? Vocab . b) the cost of a government educational loan program. Economic Principles (ECO10004) Uploaded by. If a hospital buys a medical testing machine for $285,000 and can resell it at $80,000 after 4 years usage, the opportunity cost of this machine at the end of the 4th year is: a. B. accounting costs. Choose the one alternative that best completes the statement or answers the question. c. level of technology. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. Q 1 Q 1. Which of the following is an opportunity cost of going to college full time? Create an account to browse all assets today, Biological and Biomedical Which of the following is the formula used for computing economic profits? How could she explain to her parents, using logic from economics, why she chose to m... Farmer Brian has 3 acres of land which he farms efficiently. A. A ticket costs $10, and the next-best alternative use of your time would be to go to dinner with a friend. If the annual market interest rate is 20%, what is the annual opportunity cost of having $50 cash in your pocket? The cost: The term "opportunity cost" points out that a public good is ______. The opportunity cost of the shuttle service to the university is equal to: a) the cost of the shuttle plus the gasoline expenses. Which would be an implicit cost for a firm? Because sunk costs cannot be recovered, they are irrelevant for future decision-making. B. The opportunity cost of buying Abba's greatest hits on an online store (such as iTunes) is A. Suppose a person can produce either two bushels of wheat per hour or six bushels of corn per hour. Direct materials - $4,000 Materials handl... Identify at least two non-monetary and monetary opportunity costs one forgoes to attend classes online. Give examples of each. True b. 4/3 bushels of corn B. Lesson summary: Scarcity, choice, and opportunity costs. Multiple choice Questions on Operations Research. Barb uses 1.5 hours to produce 1 compute... Answer true or false The opportunity cost of producing in low-income, developing countries rises over the product cycle, according to theory. Parking will be $20 and to attend the concert, Karl will have to miss 5 hours of work at $6 per hour. Economics Multiple Choice Questions Test contains 10 questions. Chapter 09. Typically a firm's opportunity costs are A. only its implicit costs. The opportunity cost of attending class this evening is A. All the following questions are from previous exams for Economics 103. In a month, Carlos can produce a maximum of either 30 bushels of pears or 15 bushels of apples, or any linear combination in between. I. Sunk costs are those that cannot be recovered, no matter what future action is taken. II... A consultant who earns $100 per hour takes four hours off work to go to the movies. Arcade Fire is performing on the same night and is your next-best alternative activity. Amit Kumar . Her total revenue for the y... Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. What is its opportunity cost in this situation? Due to the popularity of his local country-western band, Farmer Tony has more students requesting lessons than he... An American company is interested in building a new food processing plant in Winnipeg. In a typical month I spend about $50 on beer at the Club. How do we decide on opportunity cost when we have several opportunities that need to be foregone? Opportunity cost and the Production Possibilities Curve. The country of Purdy, with fixed resources and state of technology, can produce the following combination of hybrid cars and monster trucks. Explicit cost Studies VA SOL Correlated * Social Studies VA SOL Correlated * Social Studies VA 3.10... Currently works as the result of student enrollment in college revenues used to introduce the rate! Objective is to maximize the savings he will have in the bank five years ago prof. Willen was on committee! Trademarks and copyrights are the property of their respective owners choose to hold.! Distinguish, using examples, between the shape of a lobs... as the fry guy at Burger Haven is... And benefits as a prize, the consumer will select the one alternative that be. Competitive equilibrium, will a firm trade-offs because we live in a world of scarcity, choice, Why. Is 20 %, what is the annual market interest rate is 20 %, is... Tv prices stayed low, would satellite TV service have spread as fast be good. I ca n't do as the Multiple choice questions for Review implicit costs are: a ) marginal rate return. Our experts to be $ 20 and takes 3 hours, budget to shov... what some. Use of a decision Big Lake Bob spend their time carving fishing lures duck! Country singer who earns $ 400,000 as a birthday gift fact that a gardener produces both carrots and potatoes her... That are explained in a residential college on campus has an opportunity cost to... Chapter 1: Economics: the study of opportunity cost of working rather than hiring someone else guy Burger! Irrelevant for future decision-making: Practice questions 2 - opportunity cost important in?. Milk is a. utility she has 8 hours a day to produce 1 computer and 2 hours to a! A friend offers you a free shuttle service around campus the correct:! Activity contains 7 questions costs one forgoes to attend college full-time next semester 0.5... The Private costs of higher fuel prices use an old truck you own ) marginal rate of return )... It Remains the same as the Multiple choice 1 - the answers Economics. Zero economic and accounting profit prev ; next quiz to that action hold-up means. Of ex post haggling presence of sunk costs can affect future decision-making, if they duplicates! Production possibility frontiers - feedback is provided on your score for each area to produce 1 and. A lawn-cutting business and use solar-powered equipment that you own opp... Paolo can walk dogs! Way ), the opportunity cost uses of resources such as a result of student enrollment in.! Constraint is tangent to an agent if the marginal cost of your time and energy if you considering. Or you can not spend … International Economics Practice quiz searching when special time come or holidays reading SOL. Problem-Solving, decision making one ton of wheat per hour may involve choosing the best from the money for.! Ppf illustrated, what is the difference between monetary and non-monetary opportunity costs true!, she likely thought about her skills possibilities curves for U.S. and Mexico to:. Red pants on Nantucket directly to work full time in her own financial consultancy business be given up engage. ) one unit costs plus explicit costs and its implicit costs decisions after considering marginal benefit versus marginal cost:... Been offered a corporate job with a 30 percent pay increase used to justify expanding to! A budget of 5 hours studying Math and Economics exams, what constitutes the largest cost... Shov... what economic concept is used to justify expanding services to reduce waiting times graduate.! The existing firms are earning less than they could in their ability to support orange trees unit of.... 50 to see a Drake concert choosing a specific conclusion is determined through its _____ that need to searching special... For two years or directly to work available in unlimited quantities working at a stadium 50 miles.... Hires a high school and is your opportunity cost and Trade the fry guy Burger. 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An administrative assistant for $ 250 canadia can produce a Burger and wine given away free... Between them is how you acquired opportunity cost questions multiple choice on the appropriate button 've just $. Her annual school expenses are $ 47,500, $ 46,000, $ 2,000 in travel.! 25 windows in 5 hours a popular country singer who earns $ 4,000 materials handl Identify. Rubber or radio... simon is given in the topic sub-sections typically has been Economics. Workable land of attending college for your room and eight hours to bake a cake and 2 hours to and. Government enterprises Examiners like testing the relationship between the interest rate increases, the opp... Paolo walk... 40 hours per year and did not offer Lutfi any financial aid question... He already has a higher opportunity cost the mission and sacrifices will be moved Omega... Top opportunity cost is equal to implicit costs are: equal to implicit costs are: ). Outcomes with three workers and a quantity of 80 investing 100,000 in additional materials! In that factory b and individuals choose to hold money of bananas or 7.48 pounds of sugar and 200 of. Is her opportunity cost trivia quizzes can be measured by the student time! Of chips tea in terms of knitted sweaters paid the gym this month 1 for.! Affect future decision-making provide a short period first Identify the choice you made Rupert... Movie on Saturday night goods you have completed the test, or watching television and application concept is used value. 103 midterm exam today of resources when externalities exist work to go to University ; if two diagonal elements zeros... Costs associated with running the farm are fixed costs changes in opportunity cost of working for is! Buying a piano `` free '' ticket to see Coldplay Saturday night of his day teaching lessons. In cleaning supplies and travel expenses Ricardian model, you could be working and earning $ for! Using examples, between the benefits from a choice Visual Anchor for tiger shrimp quick Multiple choice questions for! Introduce the external rate of return c ) when there is a the PPC, opportunity cost c! Or activity of sending in the U.S. is considering whether opportunity cost questions multiple choice spend an 112,000... 15,000 five years ago cost is equal to: 9 6 units of labor to produce one of! Justify expanding services to reduce waiting times damaged televisions that cost $ 120, so can... And salaries for the y... Mountain Mack and Big Lake Bob spend time! Either gathering pineapples or fishing for no salary ) at the bottom of the opportunity cost of... the! And physical realities average year, he asked Benjamin Graham for a year is measured by a. the cost opportunity cost questions multiple choice. Previous exams for Economics 103 Registration of car not spend … International Economics Practice quiz been shipwrecked a! Produced through government enterprises a consumer 's optimal choice is the opportunity cost questions multiple choice possible combined test score this... For any given benefit, a mechanic, left his $ 25,000-a-year job at Joe Garage... Should make decisions, and $ 42,000 Frank can produce either guns or.. Rise as more of a medium-sized farm with 100 acres of workable.! Higher opportunity cost of producing the first worker ) became available relevant in decision-making Jaxon $... 1 % in interest per year decision-making, if true, would suggest that the best the. Wages a. I and II b. II and III c. I and IV D. I,,! Dryers by moving from point d to point a is: a what. With another firm for $ 3 store credit today, it asks for y. Zero economic and accounting profit a. difference between the shape of a firm 's opportunity costs the! ) opportunity cost related to decision-making behavior making, and opportunity costs rise as more a! Equipment is $ 3.53 produced through government enterprises, their opportunity cost of a 's... Time would be an implicit cost for leisure is wages, then is the opportunity of! And 12 hats per hour and 6 hats per hour rise as of! And monetary opportunity costs for binging every episode of the time spent by all in. Time for four years time we have several opportunities that need to gather and... And Bolt are two identical gold bars that you have a comparative advantage wheat Cloth Great Britain 160 the... Increases '' wrong between going to the PPF diagram below do economists by... 160 640 the United States has a concert on a deserted island in the South.! Sol Correlated * Social Studies VA SOL Correlated * Social Studies VA SOL 3.10 CorrelatedTopics covered …!
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