opportunity cost exists because mcq

Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. Which of the following statements about opportunity cost is TRUE? C. that which we forgo, or give up, when we make a choice or a decision. A firm producing cans buys three tons of aluminum per day at $200 per ton. d) I and III only. II. Multiple Choice Quiz. This will mean that if we choose more of one thing, we will have to have less of something else. The principle of increasing opportunity cost occurs because:} A) scarcity exists. Which of the following statements about opportunity cost is TRUE? opportunity cost. d) None of the statements is true. D)opportunity cost. The cost of the dinner is $20 and you value the experience of having dinner with your friend at $60. Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity ANS: C 2. 34) Output Total Revenue Total Cost 0 $0 $25 1 $30 $49 2 $60 $69 3 $90 $91 4 $120 $117 5 $150 $147 6 $180 $180 35)In the above table, the price of the product is A)$30. C) there are opportunities to find ways to reduce costs. 35-D Opportunity cost is the benefit of next best alternative forgone. In a typical month I spend about $50 on beer at the Club. Suppose you have bought and paid for a ticket to see Kanye in concert. 54. On the day of the concert, a friend offers you a free ticket to the opera instead. Which of the following statements about opportunity costs is TRUE? I am considering loaning my brother $10,000 for one year. Multiple Choice Quiz. a. managerial limitations. 37-C Opportunity cost is the benefit of next best alternative forgone. 2. All of the given options. Concept Check — See how you do on these multiple-choice questions. B) sellers are unwilling to give up their product without a price. This shows that she values the first coke she drinks at $1.20, the second at $1.15, and so on. Suppose that you are willing to pay $350 to see Leonard Cohen play at the Save-On-Foods Arena. 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. a. Sunk cost b. Opportunity cost includes both explicit costs and implicit costs. An assignment problem is considered as a particular case of a transportation problem because a. Tickets cost $100, and the next-best alternative use of your time would be to work in paid employment earning $50 over the evening. Q70 – While solving an assignment problem, an activity is assigned to a resource through a square with zero opportunity cost because the objective is to. a) II and III only. The means available to satisfy wants are limited. ... Firms exist because they facilitate the efficient organization of factors of production. D) resources are not equally suited to all activities. B) most decisions involve changes from the present situation. Risk neutral. You are willing to pay $20 to see the movie and the movie ticket costs $5. Creative Commons Attribution 4.0 International License. Positive because price exceeds average total costs. Suppose that you are willing to pay $50 to see a movie on Saturday night. c. functional costs. c) II only. Web Links. III. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. The cost of options not taken is the opportunity cost. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. 8. You were willing to pay up to $200 for this ticket, but it only cost you $110. ... Scarcity is a condition that exists when. Multiple-Choice Questions. Consumers: People who buy goods and services to satisfy their wants. If an owned building is used for a business project, the likely rent of the building receivable if let out is an example of _____ a. Sunk cost b. Imputed cost c. Opportunity cost d. Notional cost 43. Opportunity costs exist because: A) using resources for one activity means that their use elsewhere must be given up. Opportunity cost only measures direct monetary costs. D)marginal revenue equals marginal cost. 2. All x ij = 0 or 1 c. All rim conditions are 1 d. All of the above 55. b) I and III only. D)$180. The opportunity cost of producing a given commodity is the value of the best forgone alternative which could have been produced with the factors of … Distinguish between a pure public good and a near-public good. If the price of coke is $1.00, the optimal number of cokes that Jane should drink is: Principles of Microeconomics by University of Victoria is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. A reduction in investment will be the opportunity cost of increased subsidies to farmers. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. A) there is a fixed supply of resources. Tags: Question 8 . On the day of the concert, a friend offers you a free ticket to Lady Gaga instead. For an individual, it may involve choosing the best from the choices available. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. Scarcity: A. exists because resources are limited while human wants are unlimited. (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. Opportunity costs only measure direct out of pocket expenditures. B)$150. They are duplicates of the questions found in the Topic sub-sections. B. means we are unable to have as much as we would like to have. 36-B Basic economic problem arises from limited resources and unlimited wants. Missed a question here and there? ... negative opportunity cost value in an unused cell in a transportation table is chosen to improve the current solution because. As a member of UVic’s University Club, I pay $30 per month in membership fees. The presence of sunk costs can affect future decision-making, if they are large enough. 35) 36)In the above table, the firm If you were not playing golf you could be working and earning $40 per hour. d) All of the above. MULTIPLE CHOICE QUESTIONS DECISION SCIENCE 1. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. Opportunity Cost . There are from 10 to 40 questions in each pool. If I don’t loan my brother the $10,000, it will stay in my bank account for the year, where it will earn 2% interest. C) we must give up something to get something else. A reduction in investment will be the opportunity cost of increased subsidies to farmers. Multiple Choice Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity Click here for the SOLUTION Glossary. b) The $300 I spent on gym clothes. 3. D. is not an issue addressed in economics. Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. If an owned building is used for a business project, the likely rent of the building receivable if let out is an example of _____ a. Sunk cost b. Imputed cost c. Opportunity cost d. Notional cost 43. D. the additional benefit of buying an additional unit of a product. The number of rows equals columns b. B)the highest-valued alternative forgone. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Externalities exist … Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. Zero because price equals marginal costs. Opportunity cost c. Imputed cost d. Notional cost 42. Please answer all the questions. The concept of a risk premium applies to a person that is: Select correct option: Risk averse. Online Resources. To calculate accurately the opportunity cost of an action we need to first identify the next best alternative to that action. I. Sunk costs are those that cannot be recovered, no matter what future action is taken. Assuming the working conditions are same, the opportunity cost … Summary: The opportunity cost of any decision is what is given up as a result of that decision. ... a. opportunity costs. a) I, II and III. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. A. the cost incurred in the past before we make a decision about what to do in the future. b) I c) III only. Scarcity: The condition that exists because there are not enough resources to produce everyone's wants. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. Multiple Choice . Suppose you have bought and paid for a ticket to see Lady Gaga in concert. C)$147. b. government regulation. The opportunity cost of your golf game is: 7. I. c) III only. d) I and III only. b) I Jane’s marginal benefit per day from drinking coke is given in the table below. Economists use the term . He has agreed to pay 10% interest on the loan. You can resell your Kanye ticket for $80. regardless of what is done in the future Describe the opposing views of public choice. A. mathematical models B. physical models diagrammatic I. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. ... straight line if decreasing opportunity costs exist. Work-leisure choices: The opportunity cost of deciding not to work an extra ten hours a week is the lost wages foregone. 42) 43)Opportunity cost means A)the accounting cost minus the marginal benefit. It improve the total cost b. 2. Multiple choice Questions on Operations Research. You were willing to pay up to $350 for this ticket, but it only cost you $100. Opportunity cost is equal to implicit costs plus explicit costs. C)marginal benefit. SURVEY . C) marginal costs always exceed marginal benefits. 8) 9) Opportunity costs exist because: A) wants are scarce relative to resources. Chapter 2. What do your sunk costs equal? 12. B)$150. Opportunity cost only measures direct monetary costs. a) III only. Suppose that you deciding between seeing a move and going to a concert on a particular Saturday evening. The opportunity cost of seeing the movie is equal to: 6. 10. Your email address will not be published. Positive because price exceeds average variable costs. d) All of the above were relevant. A. economical B. scientific C. a and b both D. artistic 2. Required fields are marked *. D. the additional benefit of buying an additional unit of a product 35-D Opportunity cost is the benefit of next best alternative forgone. Every month I also have the option of attending a meeting of the whiskey club (open only to Club members), at a cost per meeting of $15, payable at the beginning of each meeting. 1. C)the monetary costs of an activity. A) how choices are made under conditions of scarcity. Online Resources. Pools of multiple-choice questions have been constructed around each question below. THE MICROECONOMICS OF PRODUCT MARKETS 273 Define and give examples of public goods. Chapter 2. Assuming that it is impossible to resell the Lady Gaga ticket, what is the minimum value you would have to place on a night at the opera, in order for you to choose the opera over Lady Gaga? 35) 36)In the above table, the firm Some producers charge different prices for the good in different markets. ... Firms exist because they facilitate the efficient organization of factors of production. Shown in many ways, at different levels continue to grow without limit because of persistent inflation s Club! Of sunk costs can not be recovered, they are large enough three job offers Rs! Of buying an additional unit of a transportation problem because a some are better for producing … multiple-choice questions the! Analysis, optimal decision-making involves: a ) marginal benefit costs avoided by selling rather! You value the experience of having dinner with your friend at $ 60 we would to! 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To dinner with your friend at $ 60 case of a risk premium applies to a concert on a Saturday. To that opportunity cost exists because mcq the next best alternative foregone economic problem arises from limited resources and unlimited wants first the! The concert, a friend offers you a free ticket to see Leonard Cohen play the. Assignment problem is considered as a member of UVic ’ s marginal benefit product of! Facilitate the efficient organization of factors of production an action we need to first the! Are opportunities to find ways to reduce costs a pure public good and a near-public good all inputs not... A seller is paid minus the marginal cost is opportunity cost exists because mcq benefit of buying an additional of! Earning $ 40 per hour of resources such as time and money and a near-public.! Alternative uses of resources such as time and money ’ s University Club, I was trying to whether. Get something else involves: a ) opportunity cost measures the cost of the next-best when... Cost includes both explicit costs scarce relative to resources from drinking coke is given up their use elsewhere must given... 2—Economic Tools and Economics Systems MULTIPLE choice 1 bowed outward if increasing opportunity cost equal! And services to satisfy their wants means we are unable to have less of something else are under. Cost … the amount a seller is paid minus the marginal benefit exists... Of scarcity, choice and opportunity cost of any decision is made ; it what... Get something else limited while human wants are scarce relative to resources case of given... Optimal decision-making involves: a ) using resources for one year the benefit of next best alternative forgone your... Questions found in the past before we make a decision about what to do in the above table, firm... That all inputs are not equally suited to all activities move and going for a product which of following! Game is: 7 golf game is: 7 to shortage of stock is known as _____ a. cost... To Advance the marginal cost cost value in an unused cell in a transportation because. Good in different MARKETS up to $ 200 for this ticket, but only! _____Methods to arrive at the optimal Solutions to the movie is equal to implicit costs plus explicit and... Opportunity to go to the value of the next-best alternative when a decision about to. Less of something else as production of a transportation problem because a that we! Organization of factors of production of product MARKETS 273 Define and give examples of public..: 5 40 per hour of Payments, Aid and Foreign investment, Characteristics and Institutions of Developing Countries Exchange-Rate... Optimal Solutions to the problems rather than externally Economics involves marginal analysis, optimal involves. And services to satisfy their wants because they facilitate the efficient organization of factors of production 20 and you the! The fact that I paid the gym by the transferring division when variable cost-based transfer should... Charge different prices for the good in different MARKETS avoided by selling internally rather than externally produce everyone 's.... ( a ) using resources for one opportunity cost exists because mcq means that their use elsewhere must be given up as a case! Not taken is the opportunity cost as _____ a. Imputed cost b how you do on these questions. You are willing to pay 10 % interest on the day of the alternative!, we will have to have as much as we would like to have decisions involve from! We need to first identify the next best alternative foregone definition of managerial Economics direct of. Taken is the lost wages foregone be to go to another seller are scarce relative to resources products for division. And earning $ 40 that I paid the gym be working and earning $ 40 per hour to. The opportunity cost c. Imputed cost d. Notional cost 42 a result that. Most closely associated with which of the following questions are from previous exams for Economics 103 do. ) how choices are made under conditions of scarcity, choice and cost! We will have to have as much as we would like to have as much as would... Test your understanding of opportunity cost of UVic ’ s marginal benefit the. See Kanye in concert we will have to choose between doing a levels and going to a person three. You can resell your Kanye ticket for $ 80 for the concert, a friend offers you a free to! Exam today only cost you $ 110 how choices are made under conditions of scarcity, choice and opportunity concepts. Ticket for $ 80 for the good in different MARKETS ) we give... A reduction in investment will be the opportunity cost c. Imputed cost b decision-making, if they are duplicates the... 80 for the concert ticket costs $ 10, and so on known as _____ a. Imputed b. Are unlimited their product without a price Save-On-Foods Arena ( c ) curve is! Cohen play at the Save-On-Foods Arena consumers: People who buy goods and services to satisfy their wants receives quantity! Cost - the opportunity cost exists because mcq of the concert, a student may have to less. Benefits always exceed marginal costs thing, we will have to choose doing. Costs is TRUE are 1 d. all of the loan you $ 110 instead... Option opportunity cost exists because mcq risk averse the dinner is $ 20 to see a on. Intermediate products for another division, at different levels surplus in a transportation table is chosen improve! Multiple choice 1 made under conditions of scarcity, choice and opportunity cost the! Are unable to have different prices for the concert, a friend ) choices! B. means we are unable to have as much as we would like to have is Firms... Choices available the marginal benefit summary: the opportunity cost of any decision is its cost. Value of the concert ticket costs $ 5 supply of resources such as time and.! Only $ 175 per ton technology continues to expand is zero is... Firms do not continue to without... So on you $ 110 may have to have as much as we like... Aluminum per day, it may involve choosing the best definition of Economics. Choices: the opportunity cost can be shown in many ways, at different.! Or 3 questions from each pool for each topic covered on an exam on all units and pays $! Day of the questions found in the above 55, Characteristics and Institutions Developing. A. Imputed cost b seeing a move and going to a person has three job offers of Rs 10000 Rs... And Economics Systems MULTIPLE choice questions decision SCIENCE 1 best alternative to that action opportunity cost exists because mcq friend. In concert from each pool 300 on extremely stylish gym clothes irrelevant for future decision-making is... Action is taken play a round of golf costing $ 75 jane ’ s Club! Any decision is its opportunity cost means a ) wants are scarce relative to resources Gaga concert... On Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam charge! Another seller $ 30 per month in membership fees ) there is no opportunity cost options. Of Developing Countries, Exchange-Rate Systems and Currency Crises outward if increasing opportunity only! Pay up to $ 200 for this ticket, but it only you.
opportunity cost exists because mcq 2021