opportunity cost questions and answers pdfrumen radev model

A rational decision maker does which of the following? The opportunity cost of the decision to invest in stock is the value of the interest. If the economy represented by Figure 1.1 is presently producing 12 units of Good B and zero units of Good A: (A) The opportunity cost of increasing production of Good A from zero units to one unit is the Giving the chance or opportunity of having the orange, would be the opportunity cost. 4.The opportunity cost of moving from f to c is… 3.The opportunity cost of moving from d to b is… 7 Bikes. Gkseries provide you the detailed solutions on Computer Based Optimization Techniques as per exam pattern, to help you in day to day learning. Ppf and opportunity cost questions and answers . The opportunity cost of building a new high school is a. The expense of new desks, chalkboards, and new desks for the new high school c. Answer: (d) All of these. D)substitution cost. Which of the following is not applied in capital budgeting? In the case of Becci, each poster costs 1200:2 = 600 entries. Strategic Management Multiple Choice Questions and Answers pdf | Strategic Management MCQ with Answers pdf download for all Exams. Teacher Login | Student Login Econ lowdown opportunity cost answers. You can use the example portion at the bottom as either a summative or formative assessment. B. raises the opportunity cost of money and leads to an increase in the quantity of money demanded. Define: opportunity cost Answer The benefit foregone of the best alternative - which is sacrificed when making a decision. Takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions b. a. 4 Computer. By choosing to go to college, you give up the income you would have earned on the job and the valuable on-the-job experience you would have acquired. Answer: (c) Rightward Shift. B relevant inventory carrying costs. 21. Boston has lower opportunity costs in producing white socks (1 < 2) and Chicago has lower opportunity costs in producing red socks (0.5 < 1). The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want. This suggests answer A. Maximum efficiency. Fixed resources 2. (a) Sunk costs are ignored, (b)Opportunity costs are excluded, (c)Incremental cash flows are considered, (d) Relevant cash flows are considered. Comparative advantage. Takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions b. Assume the following schedule for producing TVs Quantity of TVs Marginal Benefit (MB) (Dollars earned from a sale) Marginal Costs (MC) (Production costs) 33) With appropriate examples, define the difference between direct and indirect taxes. Choose an answer and hit 'next'. The cost of studying economics equals the forgone benefit of watching TV. According to the theory of competitive advantage, specialization and free trade will benefit all trading parties, even those that may be absolutely more efficient producers. A rational decision maker does which of the following? A)the question "what." B)money C)giving up something for nothing. 33. Fill in the answer blanks, or underline the correct answer in parentheses. 1.1.1.4 A decrease in the rate of interest: A. lowers the opportunity cost of money and leads to an increase in the quantity of money demanded. 3. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. PPC—shows all the possible combinations of 2 goods or services. Costs are higher in one country than in another. 16. WWW.COMMERCEPK.COM http://www.commercepk.com/mcqs-complete-solved-multiple-choice-question-with-answer-key/ Cost and Management Accounting-615A C. the income which could have been earned by a college student had he or she worked full time instead of attending college. Use Figures 1.1 and 1.2 to answer Questions 1 and 2. we measured in Questions 2 and 3 . 8. These taxes are based I can eat Aldi yogurt for 37 cents but I prefer Dannon or Yoplait for 50 cents for its taste. The definition of opportunity cost is the value of any alternative you must give up when you make a choice. In building the hospital, the city has . Study Questions (with Answers) Page 1 of 7 (9) Study Questions (with Answers) . Given 2 assumptions: 1. 0 Computers. Therefore, every choice we make has a value. Refer to the table below. By waiting until the last minute to buy a theater ticket, someone whose opportunity cost of time is high would risk wasting a valuable evening if a seat turned out to be unavailable, and hence her . a. The opportunity cost of tax revenues spent on healthcare is the lost opportunity to spend the money on education. That which we forgo, or give up, when we make a choice or a decision. View Answer. Answer: C 10. Implicit costs a. Forgone benefits of any single transaction b. E.g. Assume Tony's T-shirts makes shirts for local soccer, baseball, basketball, and other sports teams. NOTE: THAT CURVE "BB" IS THE CURRENT FRONTIER FOR THIS ECONOMY. Our country's national security Ensuring the welfare of all citizens Directions: Answer each of the following scenarios by writing the letter of the correct multiple‐choice question on the line. ANSWERS PRACTICE CLASSWORK, DAY #4 Directions: Each of the questions or incomplete statements below is followed by four (4) suggested answers or completions. Question 5. 1) A relative price is A)the ratio of one price to another. First, 2. 1 car = 15 days = 1.25 planes (B) What is the opportunity cost for each corporation in producing these goods? By choosing to go to college, you give up the income you would have earned on the job and the valuable on-the-job experience you would have acquired. It is important to learn to make good economic choices, or decisions. Checking the other options you can see Increasing opportunity cost. In which opportunity cost, a person can avail that cost by using the same resources. b. Use the PPF below to answer the following questions. Explicit costs a. Comparative advantage In both, the opportunity cost of 1 computer is 1/5 of a car. Question 32. Expenses that are paid with cash or equivalent b. B. the tuition fees paid to a university. Question 4. The governor View Answer. B)the difference between one price and another. b. The cost of watching TV is the opportunity cost, which equals to the forgone benefit of studying economics. Opportunity Cost. Angela is a college student. Base your answer only on the information above and on comparative-advantage considerations. D) a ratio of real GDP to nominal GDP. 1.2 Give It Up for Opportunity Cost! If you ask Adam to make posters, the opportunity cost of each poster is 400 entries. Every time someone makes a choice, there are other things that are not chosen. Answer the following questions: a. Profit Using Accounting Costs Total Revenue Profit Using Opportunity Costs $700.000 Total Revenue $700,000 QUESTION 3 technicians Owner's Salary Depreciation Allowances Nail technicians Refer to the attached pdf and answer the question that follows A A Happy Nails pdf Owner's Time Cost of using building and equipment (opportunity cost) What is . Therefore, neither has a comparative advantage in either good. A growth of resources in an economy is shown in PP by. 1 Scarcity, Opportunity Costs, and Basic Economic Questions. (B) its opportunity costs are least. Another opportunity cost of going to college is the cost of tuition, books, supplies, and . a. You will receive your score and answers at the end. If Athletic Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional 100 bats? 2. The answer is A. What is the opportunity cost of this decision? opportunity cost—choosing to do one thing prevents us from having the opportunity to do another. 1 car = 8 days = 0.8 planes (2) XYZ's opportunity cost of producing a unit of cars is 1.25 units of planes. How to Calculate Opportunity Cost - Quiz & Worksheet. Mike - wash dishes . . PPCs for increasing, decreasing and constant opportunity cost. A. Michael Porter B. Peter Drucker C. Hamel D. Abell. The last option is the most attractive, so Cliff should be the first who is assigned to do the posters. Finally, only indirect costs are considered opportunity costs. The cost incurred in the past before we make a decision about what to do in the future. These costs should be ignored. (2 marks for each good quality definition) 2 1. A Market Economy answers these questions by allowing the buyers and the producers . D $180. (l) ABC's opportunity cost of producing a unit of cars is 0.8 units of planes. If a city decides to build a hospital on vacant land it owns, the opportunity cost is the value of the benefits forgone of the next best thing which might have been done with the land and construction funds instead. With the same amount of resources, Country A can produce . Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action (foregone profit). The questions are usually in order of topic but not necessarily in order of difficulty. you prepare to answer test questions can be found on page 36. Continuing with the information in question 2, if Sasha applies the cost-benefit principle (the action should be taken if the extra benefits All of the following are examples of opportunity cost except: A. the leisure time sacrificed to study for an exam. These quiz objective questions are helpful for competitive exams. Without trade, in Boston the price of 1 pair of red socks would be 1 pair of white socks, whereas in Chicago 1 pair of red socks would be exchanged for 0.5 pair of white socks. One of the opportunity costs of going to college is not being able to take a job. (B) the total time spent by all parties in carrying out the action. Lesson summary: Opportunity cost and the PPC. Suppose massive new sources of oil and coal are found within the economy and there are major technological innovations in both sectors of the economy. The opportunity cost of moving from a to b is… If Cliff switches to making posters, then each poster costs your team 900:3 = 300 entries. The opportunity cost of an action is (A) the monetary payment the action required. For example: My choice in lunch foods often involves opportunity cost. Multiple choice: On your answer sheet, darken the letter of the choice that best completes the statement or answers the question. d. The productivity of labor differs across countries and industries. Another opportunity cost of going to college is the cost of tuition, books, supplies, and . 32. Production Possibilities Curve Answers Directions: Use the information in FIGURE 1 PPC to answer the following questions about the Alpha economy. 32) Define opportunity cost. (a) Economic problem (b) Marginal Cost (c) Total Cost (d) Economic Cost. $1.25. The answer to this question is obviously yes. Please note that the questions below w i l l n o t appear on your exam. Opportunity Cost Questions and Answers - Discover the eNotes.com community of teachers, mentors and students just like you that can answer any question you might have on Opportunity Cost A relevant purchase order costs. Sunk Costs - outlays of resources or effort from past periods. Answer each question with a complete sentence on a . Question 31. c. Why does the additional production of 100 bats in number 2 . d. (a) Leftward Shift (b) Unchanged PPC (c) Rightward Shift (d) None of the above. Select one that is best in each case. A farmer can cultivate both paddy and sugarcane in farmland. Questions and Answers on Managerial Economics. The authors' discussion may be summed up as follows. Students can fill out each portion of the notes as you teach each concept. C)accounting cost. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. Opportunity Cost Define and describe opportunity cost. The cost of opportunity is the worst of the various alternatives to be abandoned when the choice is made in the face of scarcity. On average, Tony sells 1,000 shirts each . Practice Questions to accompany Mankiw & Taylor: Economics 1 Chapter 3 1. Use Econ Lowdown Online Learning in Your Classroom! For example, the opportunity cost of you being here is the salary you could be making if you remained in the workforce. Chapter 3 - Demand and Supply - Sample Questions Answers are at the end fo this file MULTIPLE CHOICE. _____7. One of the opportunity costs of going to college is not being able to take a job. For example, given a set of scarce resources, in order to produce additional "butter," a society has to give up the opportunity to produce some "guns." have to give up, that is, the opportunity cost? The expense of hiring more teachers for the new high school b. Opportunity Costs - revenues (or profits) foregone by choosing an alternate course of action. 1)opportunity costs are the main expenditure on most companies' balance sheets 2)the costs to society of some activities are greater than the costs to private individuals page 3 of this booklet to organize your answers and for scratch work, but you must write your answers on the lined pages provided for each question. Calvin has a lower opportunity cost of producing cloth, so he has a comparative advantage in producing cloth. . 1. Answer: Opportunity cost is the cost of the next best alternative use. Production possibilities curve. Special Order Considerations. Production Possibilities Curve Answers Directions: Use the information in FIGURE 1 PPC to answer the following questions about the Alpha economy. (Eg.) Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. Questions Microeconomics (with answers) 1a Markets, demand and supply 01 Price and quantity 1 Price Demand Supply 0 100 0 1 80 30 2 60 60 3 40 90 4 20 120 5 0 150 Draw demand and supply using a graph. The graphics were designed several years ago, so design costs are no longer incurred. Opportunity Cost Complete the following questions in the time allowed by your teacher QUICK DEFINITIONS Write a short, accurate definition for each of the following key terms. Business Economics Multiple Choice Questions and Answers PDF. D. raises the opportunity cost of money and leads to . D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. Choose the one alternative that best completes the statement or answers the question. Unattainable. The concept of 'Strategic window' was introduced by ___. Which curve in the diagram would The next best thing that is not chosen is called a person's opportunity cost. C) the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period. context, 'opportunity costs are the fodder of daily decisions' and are 'the only input that economists are likely to have'. The pay increase if the extra leisure hour is taken is 260-240 pounds = 20 pounds per week. Microeconomics Topic 1: "Explain the concept of opportunity cost and explain why accounting profits and economic profits are not the same." Reference: Gregory Mankiw's Principles of Microeconomics, 2nd edition, Chapter 1 (p. 3-6) and Chapter 13 (p. 270-2). opportunity cost of producing 50 more units of good B (200-250) is 25 units of good A. Hopefully this shows you how a simplified model can demonstrate the concept of opportunity cost. Figure 1 shows the production possibilities curve for Alpha, which makes two products: weapons of mass destruction and food. Choosing margin helps people to get a little better thing then the other available options as it normally ignore the sunk cost. A new public works project requires . Production Possibilities Curve as a model of a country's economy. Principles of Corporate Finance Questions and Answers In this document you will find some sample questions about the topics included in the final exam. 1. Implicit cost is also called imputed cost or book cost. C irrelevant inventory carrying costs. Manufacturers would like to produce. Opportunity cost is. based on the concept of opportunity cost: • Opportunity cost is that which we give up or forgo, when we make a decision or a choice. In short, an opportunity cost is the cost of the missed opportunity. We have provided Introduction to Micro Economics Class 11 Economics MCQs Questions with Answers to help students understand the concept very well. Theproctor will announce thebeginning and end of reading period. (D) production can occur with the greatest increase in employment. Answer to Question: a. . Opportunity cost c. Scarcity d. Trade off e. Comparative advantage 4. We provide all important questions and answers from chapter Computer Based Optimization Techniques. You are advised to spend the 10-minute period reading all the questions, andtouse page 3 sketch graphs, make notes, plan your answers. Answers are provided. C)the slope of the supply curve. > Opportunity Cost - The Economic Lowdown Podcast Series, Episode 1 Econ lowdown opportunity cost answers. This one-pager of guided notes is PERFECT for teaching the concepts of scarcity, choice and opportunity cost quickly and efficiently. The implication is that such graduates should definitely be able to answer 'simple, albeit contrived, opportunity cost questions'. 3. B) a comparison of real GDP in one period relative to another. Mu l ti p l e -C h o i c e 1. The manufacturing opportunity curve shows different combinations of output: consumers like to consume. 5.What can you say about point G? . In short, an opportunity cost is the cost of the missed opportunity. comparative advantage. View Answer. Martha's opportunity cost of making a pie is: a) 3/4 of a cake b) 4/3 of a cake c) 8 cakes d) 80 cakes. 5. View Test Prep - Answers for Quiz 1.pdf from ECON 50 at Claremont McKenna College. The opportunity cost of a yard of cloth for William is 3 pounds of food and the opportunity cost of one yard of cloth for Calvin is 1/2 pound of food. If Athletic Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional 100 bats? If there were an official slogan for the concept of opportunity cost, it would be, "There is no such thing as a free lunch." The usual meaning of the slogan is that there are strings attached (D) the cost of all alternative actions that could have been taken. Figure 1 shows the production possibilities curve for Alpha, which makes two products: weapons of mass destruction and food. Practice: Opportunity cost and the PPC. Answer each question with a complete sentence on a separate piece of paper. Define opportunity cost and provide an example? Opportunity cost: Ans: The value of the best foregone . The person with the lower opportunity cost should perform the chore. A price index is: A) a comparison of the price of a market basket from a fixed point of reference. Strategic Management Multiple Choice Questions and Answers. She takes a full load of classes and has . This assignment is about the different prospective of managerial economics. (C) the value of the opportunity or opportunities that must be sacrificed in order to take the action. Andy and Hannah and the time it takes each of them to clean an office and clean a jail cell: 15 min . c. Prices are lower in one country than in another. Ch 5: Techniques of project valuation: NPV, IRR, etc Ch 5 8 Payback Consider the . According to economic growth, production possibility curve will show (a) a downward shift (b) an inward shift (c . 1. is one of the most important concepts in economics and is the basis of all economic decision making. 8 Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as. Describe the situation if Price = 1 Price = 4 02 Price and quantity 2 . Scarcity, Opportunity Costs, and Basic Economic Questions: The Production Possibility Model: The Market: Demand and Supply: Market Equilibrium and Applications: Elasticity: Consumer Choice: The Firm and Production: Short-Run Production and Costs: Long-Run Production and Costs: Market Structure: Perfect Competition: Market Structure: Monopoly The opportunity cost question we presented to respondents was adapted from page 4 of Robert Frank and Ben Bernanke's textbook, Introduction to Microeconomics (2001), and was presented exactly as follows to ASSA survey respondents:3 Please Circle the Best Answer to the Following Question: You won a free ticket to see an Eric Clapton concert (which Answer: $180. B)opportunity cost. Scarcity, Opportunity Costs, and Basic Economic Questions: The Production Possibility Model: The Market: Demand and Supply: Market Equilibrium and Applications: Elasticity: Consumer Choice: The Firm and Production: Short-Run Production and Costs: Long-Run Production and Costs: Market Structure: Perfect Competition: Market Structure: Monopoly Question 31. A cost that cannot be avoided, regardless of what is done in the future. Starting from the original production point, the opportunity cost of producing one more bushel of wheat must be higher than 1.7 bushels of corn. Best shape of PPC reflects (a) diminishing opportunity cost (b) constant opportunity cost (c) increasing opportunity cost (d) None of these Answer: (a) diminishing opportunity cost. 5. (a) Cash flows be calculated in incremental terms,(b) All costs and benefits are measured on cash basis, 41) 42)The loss of the highest-valued alternative defines the concept of A . Lesson Abstract: C $160. The PPF can be used to calculate the opportunity cost of various production decisions. Value of the best alternative sacrificed as compared to what actually takes place II. C. lowers the opportunity cost of money and leads to a decrease in the quantity of money demanded. Direct Taxes: Is the tax the government collects directly from the people. D relevant opportunity cost of capital. 1. What is another name for opportunity cost in economics? (A) its explicit costs are least. This is the currently selected item. b. and opportunity costs and knows the factors of production a. understands the meaning of scarcity of resources or inputs, goods, and services b. b.understands the role of land, labor, capital . 1 Macroeconomics SAMPLE QUESTIONS MULTIPLE-CHOICE Answer: (a) Economic problem . Practice Questions and Answers from Lesson I -3: Trade 4 because we know that opportunity costs are increasing.

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