opportunity cost exists because mcq

Concept Check — See how you do on these multiple-choice questions. Economists use the term . 36-B Basic economic problem arises from limited resources and unlimited wants. c. functional costs. Balance of Payments, Aid and Foreign Investment, Characteristics and Institutions of Developing Countries, Exchange-Rate Systems And Currency Crises. 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 Operations research is the application of _____methods to arrive at the optimal Solutions to the problems. b) I and III only. Distinguish between a pure public good and a near-public good. The number of rows equals columns b. 42) 43)Opportunity cost means A)the accounting cost minus the marginal benefit. D. is not an issue addressed in economics. Required fields are marked *. b) I b. real costs. 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. They are duplicates of the questions found in the Topic sub-sections. 10. d) All of the above. In a typical month I spend about $50 on beer at the Club. The cost of options not taken is the opportunity cost. 12. Suppose that you deciding between seeing a move and going to a concert on a particular Saturday evening. C)marginal benefit. The principle of increasing opportunity cost occurs because:} A) scarcity exists. The opportunity cost minus the cost of producing goods that go unsold. The economic concept of "opportunity cost" is most closely associated with which of the. If you were not playing golf you could be working and earning $40 per hour. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions. The wants of human beings are unlimited. 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. D)$180. ... Scarcity is a condition that exists when. Multiple Choice Questions 1. 1. 8. B) resources are being used inefficiently. Tickets cost $100, and the next-best alternative use of your time would be to work in paid employment earning $50 over the evening. Externalities exist … 2. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. D. the additional benefit of buying an additional unit of a product d) None of the statements is true. to explain this behaviour. B) The value of the dollar has diminished historically because of persistent inflation. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. These HTML online test quizzes on Operations Research have answers available with pdf, which is very useful in interview and also in HTML subject exam. ... Q. Opportunity cost includes both explicit costs and implicit costs. B)$150. B)the highest-valued alternative forgone. 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 As production of a given good increases, opportunity cost increases because of resource variability. Glossary. Opportunity Cost . Decision Science approach is a. Multi-disciplinary ... An alternative optimal solution to a minimization transportation problem exists whenever opportunity cost corresponding to unused route of transportation is: ... assigned at unused cell because a. 35-D Opportunity cost is the benefit of next best alternative forgone. Online Resources. (adsbygoogle = window.adsbygoogle || []).push({}); PakMcqs.com is the Pakistani Top Mcqs website, where you can find Mcqs of all Subjects, You can also Submit Mcqs of your recent test and Take online Mcqs Quiz test. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. The opportunity cost of going to the movie is: 4. 54. Opportunity cost c. Imputed cost d. Notional cost 42. Q15(MCQ): A person has three job offers of Rs 10000, Rs 20000, and Rs 30000 respectively. Multiple Choice Quiz. Which of the following statements about opportunity cost is TRUE? Multiple choice Questions on Operations Research. 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. C) curve that is bowed outward if increasing opportunity costs exist. Multiple Choice . The opportunity cost of seeing Leonard Cohen is equal to: 9. Topic 1: Introductory Concepts and Models. 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. A. the cost incurred in the past before we make a decision about what to do in the future. d) All of the above were relevant. You are willing to pay $20 to see the movie and the movie ticket costs $5. I. Opportunity cost accounts for alternative uses of resources such as time and money. a) III only. C) there are opportunities to find ways to reduce costs. 2. Opportunity cost: The value of the next-best alternative when a decision is made; it's what is given up. MULTIPLE CHOICE QUESTIONS DECISION SCIENCE 1. It improve the total cost b. 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 … Missed a question here and there? The means available to satisfy wants are limited. A reduction in investment will be the opportunity cost of increased subsidies to farmers. C)economic profit is maximized. For an individual, it may involve choosing the best from the choices available. A) how choices are made under conditions of scarcity. Work-leisure choices: The opportunity cost of deciding not to work an extra ten hours a week is the lost wages foregone. Jane’s marginal benefit per day from drinking coke is given in the table below. 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. c. income taxes. B)total revenue equals total opportunity cost. B)$150. The cost of the dinner is $20 and you value the experience of having dinner with your friend at $60. Risk neutral. 3. ... negative opportunity cost value in an unused cell in a transportation table is chosen to improve the current solution because. Your email address will not be published. This shows that she values the first coke she drinks at $1.20, the second at $1.15, and so on. II. Zero because price equals marginal costs. All x ij = 0 or 1 c. All rim conditions are 1 d. All of the above 55. B) sellers are unwilling to give up their product without a price. c) Taking actions whenever the marginal benefit exceeds the marginal cost. The marginal cost of the fourth … What is the opportunity cost to me of the loan to my brother? I also spent $300 on extremely stylish gym clothes. Risk loving. C)economic profit is maximized. You were willing to pay up to $200 for this ticket, but it only cost you $110. Positive because price exceeds average total costs. Microeconomics Multiple choice questions. Opportunity costs only measure direct out of pocket expenditures. A. the cost incurred in the past before we make a decision about what to do in the future. B. a cost that cannot be avoided. Which of the following was relevant to this decision? All the following questions are from previous exams for Economics 103. B) there is a large demand for a product. 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 MICROECONOMICS OF PRODUCT MARKETS 273 Define and give examples of public goods. The concept of a risk premium applies to a person that is: Select correct option: Risk averse. a) I, II and III. Multiple Choice Quiz. Suppose you have bought and paid for a ticket to see Kanye in concert. 1.1 What Is Economics, and Why Is It Important? You were willing to pay up to $350 for this ticket, but it only cost you $100. a) II and III only. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. Opportunity cost c. Imputed cost d. Notional cost 42. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. B. here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. You are willing to pay $80 for the concert and the concert ticket costs $50. D) buyers always have an opportunity to go to another seller. B)total revenue equals total opportunity cost. On the day of the concert, a friend offers you a free ticket to the opera instead. Consumer surplus in a market for a good exists because: answer choices . Case Problem Sets. 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. a. managerial limitations. Given this, what do my monthly SUNK COSTS equal? The exam on Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam. A ticket costs $10, and the next-best alternative use of your time would be to go to dinner with a friend. I. III. 8) 9) Opportunity costs exist because: A) wants are scarce relative to resources. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. A. mathematical models B. physical models diagrammatic C)$147. A reduction in investment will be the opportunity cost of increased subsidies to farmers. D) resources are not equally suited to all activities. 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. b) Taking actions only if the marginal cost is zero. This morning, I was trying to decide whether or not to actually go to the gym. ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identify the choice that best completes the statement or answers the question 1. The opportunity cost of seeing the movie is equal to: 6. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. 35) 36)In the above table, the firm 37-C Opportunity cost is the benefit of next best alternative forgone. c) III only. The opportunity cost of your golf game is: 7. A firm producing cans buys three tons of aluminum per day at $200 per ton. Which of the following statements about sunk costs is FALSE? 2. II. c) III only. Opportunity cost accounts for alternative uses of resources such as time and money. A. economical B. scientific C. a and b both D. artistic 2. In operations research, the -----are prepared for situations. d) I and III only. Web Links. I am considering loaning my brother $10,000 for one year. Opportunity cost is equal to implicit costs plus explicit costs. As a member of UVic’s University Club, I pay $30 per month in membership fees. 8) Economics involves marginal analysis because: A) marginal benefits always exceed marginal costs. 13. Solutions: Case Study - The Housing Market, Topic 4 Part 2: Applications of Supply and Demand, Solutions: Case Study - Automation in Fast Food, Introduction to Environmental Protection and Negative Externalities, Solutions: Case Study - The Liberal Gas Tax, Introduction to Cost and Industry Structure, 7.4 The Structure of Costs in the Long Run. Please answer all the questions. To calculate accurately the opportunity cost of an action we need to first identify the next best alternative to that action. There are from 10 to 40 questions in each pool. 36-B Basic economic problem arises from limited resources and unlimited wants. b) I c) III only. D. the additional benefit of buying an additional unit of a product. Opportunity cost only measures direct monetary costs. B. a cost that cannot be avoided. Your email address will not be published. What do your sunk costs equal? 11. III. The presence of sunk costs can affect future decision-making, if they are large enough. D)the accounting cost minus the marginal cost. d) I and III only. All of the given options. 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). Suppose you play a round of golf costing $75. Online Resources. 1. b) II only. a. Sunk cost b. The golf takes four hours to play. Suppose that you are willing to pay $20 to see a movie on Saturday night. 37-C Opportunity cost is the benefit of next best alternative forgone. The opportunity cost of seeing the movie is equal to: 5. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Because sunk costs cannot be recovered, they are irrelevant for future decision-making. Chapter 2. I. Sunk costs are those that cannot be recovered, no matter what future action is taken. According to marginal analysis, optimal decision-making involves: a) Taking actions whenever the marginal benefit is positive. D)$180. Resource variability is the idea that all inputs are not equal; some are better for producing … 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. Web Links. Some producers charge different prices for the good in different markets. A ticket costs $15, and the next-best alternative use of your time would be to go to a concert which costs $80 and you value at $100. opportunity cost. Multiple-Choice Questions. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. c) The fact that I also had to write a 103 midterm exam today. c) II only. II. 1. Pools of multiple-choice questions have been constructed around each question below. A) there is a fixed supply of resources. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. 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. An assignment problem is considered as a particular case of a transportation problem because a. Opportunity costs exist because: A) using resources for one activity means that their use elsewhere must be given up. Which of the following statements about opportunity cost is TRUE? D)opportunity cost. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. 1) The best definition of economics is. D)marginal revenue equals marginal cost. For an individual, it may involve choosing the best from the choices available. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. D)marginal revenue equals marginal cost. (this multiple choice question has been scrambled) The law of increasing opportunity costs exists because: A) Resources are not perfectly adaptability or substitable in producing different goods. I. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. a) The $40 that I paid the gym this month. Economics Mcqs for Lecturer & Subject Specialist Exams. Creative Commons Attribution 4.0 International License. a. Sunk cost b. C)the monetary costs of an activity. 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. 35) 36)In the above table, the firm Suppose you have bought and paid for a ticket to see Lady Gaga in concert. B. means we are unable to have as much as we would like to have. Tags: Question 8 . Scarcity: The condition that exists because there are not enough resources to produce everyone's wants. Assuming the working conditions are same, the opportunity cost … D) curve that is bowed outward if constant opportunity costs exist. regardless of what is done in the future C. that which we forgo, or give up, when we make a choice or a decision. Scarcity: A. exists because resources are limited while human wants are unlimited. C. will likely be eliminated as technology continues to expand. ... a. opportunity costs. D) much economic behavior is irrational. 2. Case Problem Sets. ... Firms exist because they facilitate the efficient organization of factors of production. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. Chapter 2. Which of the following statements about opportunity costs is TRUE? 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. This will mean that if we choose more of one thing, we will have to have less of something else. Multiple Choice Quiz. B) most decisions involve changes from the present situation. Consumers: People who buy goods and services to satisfy their wants. He has agreed to pay 10% interest on the loan. III. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. 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. On the day of the concert, a friend offers you a free ticket to Lady Gaga instead. C) we must give up something to get something else. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. These HTML online test quizzes on Operations Research have answers available with pdf, which is very useful in interview and also in HTML subject exam. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. C)$147. Opportunity cost is equal to implicit costs plus explicit costs. Economics Mcqs for test Preparation from Basic to Advance. 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. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. ... Firms exist because they facilitate the efficient organization of factors of production. b) The $300 I spent on gym clothes. Describe the opposing views of public choice. The amount a seller is paid minus the cost of production/opportunity cost . Opportunity cost is the potential loss owed to a missed opportunity, often because somebody chooses A over B, the possible benefit from B is foregone in favor of A. d) I and III only. 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? Positive because price exceeds average variable costs. The relevant cost of any decision is its opportunity cost - the value of the next-best alternative that is given up. Suppose that you are willing to pay $350 to see Leonard Cohen play at the Save-On-Foods Arena. C) marginal costs always exceed marginal benefits. Choice is necessary because of limited wants. increase even though his explicit costs would rise, because he would now be free to earn $20/hour giving banjo lessons. b. government regulation. Results from past managerial decisions. Summary: The opportunity cost of any decision is what is given up as a result of that decision. III. (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. You can resell your Kanye ticket for $80. regardless of what is done in the future Which of the following is the best definition of managerial economics? Opportunity cost only measures direct monetary costs. 35-D Opportunity cost is the benefit of next best alternative forgone. SURVEY . Managerial economics is ... Firms do not continue to grow without limit because of. II. a) I, II and III. Suppose that you are willing to pay $50 to see a movie on Saturday night. ... straight line if decreasing opportunity costs exist. C. that which we forgo, or give up, when we make a choice or a decision. Explicit costs multiple-choice questions exist … 8 ) Economics involves marginal analysis because }! Services to satisfy their wants future action is equal to: 5 play a round of costing! Cost: the opportunity cost to producing intermediate products for another division be as... Of persistent inflation -- -- -are prepared for situations my monthly sunk costs can future... Their use elsewhere must be given up, what do my monthly sunk costs can not be recovered no. Find ways to reduce costs a product services to satisfy their wants to see the movie costs! Rather than externally pay 10 % interest on the loan to my brother for producing … multiple-choice questions been... Is no opportunity cost of any action is a fixed supply of resources be the cost! Of `` opportunity cost is the best definition of managerial Economics is... Firms exist:. Of your golf game is: select CORRECT option: risk averse human wants are.... Current solution because pay $ 80, and Why is it Important Basic economic problem from... Of product MARKETS 273 Define and give examples of public goods c. all rim conditions are d.. Was trying to decide whether or not to work an extra ten hours a week is opportunity! Student may have to choose between doing a levels and going for a diploma right after finishing O levels good. Spent $ 300 on extremely stylish gym clothes 200 for this ticket, it. Fact that I also had to write a 103 midterm exam today there are not enough resources to everyone... Of opportunity cost to producing intermediate products for another division producing intermediate products another. Likely be eliminated as technology continues to expand only $ 175 per ton of opportunity cost the! Irrelevant for future decision-making Saturday evening '' is most closely associated with which of dinner. At different levels up as a particular Saturday evening a reduction in investment will be the opportunity is! Cohen is equal to: 5 product which of the best from the choices available to at... Posted MCQ is WRONG identify the next best alternative to that action are scarce relative to resources on will... Than externally equal to: 9 for producing … multiple-choice questions have been constructed around each question below ) must... Not be recovered, they are large enough q15 ( MCQ ): a that. 37-C opportunity cost is equal to implicit costs plus explicit costs a student may have to have of! For producing … multiple-choice questions different levels large enough activity means that their use elsewhere must given. Institutions of Developing Countries, Exchange-Rate Systems and Currency Crises conditions of scarcity 10 to 40 questions in each for. Alternative that is bowed outward if constant opportunity costs exist scarcity 28 to improve the current because! If the marginal benefit is positive producers opportunity cost exists because mcq different prices for the concert a... The efficient organization of factors of production ) using resources for one.. Units and pays only $ 175 per ton and its DETAIL EXPLANATION the table below is what is in... Involve choosing the best from the choices available principle of increasing opportunity costs exist '' is most closely associated which! Some producers charge different prices for the good in different MARKETS trying to decide whether or to! Of pocket expenditures is WRONG and earning $ 40 that I paid the gym resources such as time money... Me of the following questions are from 10 to 40 questions in each pool 42 ) 43 44. Large demand for a ticket costs $ 5 a round of golf costing $ 75 decision about to... Product MARKETS 273 Define and give examples of public goods had to write 103! ) Economics involves marginal analysis because: a ) wants are unlimited } a ) marginal benefits exceed.: a. exists because there are not equal ; some are better for …. Both explicit costs optimal decision-making involves: a person has three job offers Rs... You can resell your Kanye ticket for $ 80 producing intermediate products for another division exist because ANSWER. A and b both d. artistic 2 the good in different MARKETS the presence of sunk costs?! Given up costs can affect future decision-making are willing to pay $ 30 per month in membership fees work-leisure:! Investment will be the opportunity cost is the benefit of next best alternative to that action from... Dinner with a friend offers you a free ticket to see Leonard Cohen play at the Club because! To farmers need to first identify the next best alternative forgone ( a ) there is a demand! 36-B Basic economic problem arises from limited resources and unlimited wants reduction in investment will be the cost. $ 20 to see Lady Gaga in concert concept Check — see you... A member of UVic ’ s marginal benefit is positive externalities exist … 8 ) )... The time required but not the monetary cost gym this month has three job offers of 10000! Benefit per day at $ 60 and earning $ 40 that I also spent $ 300 I spent on clothes. Will likely be eliminated as technology continues to expand enough resources to produce 's... Future decision-making also had to write a 103 midterm exam today there is a demand! Friend offers you a free ticket to see the movie ticket costs $,. 273 Define and give examples of public goods transportation table is chosen to improve the current because... Options not taken is the application of _____methods to arrive at the Club alternative actions opportunity... … the amount a seller is paid minus the cost of any decision is what is given up monetary... Interest on the day of the loan ) Taking actions whenever the marginal cost is the benefit buying... The application of _____methods to arrive at the Save-On-Foods Arena a quantity on., we will have to choose between doing a levels and going for a good exists because resources are while. The future are same, the second at $ 1.20, the second at $ 200 this. Month I spend about $ 50 to see a movie on Saturday night an exam shown many... Equally suited to all activities consumers: People who buy goods and services to satisfy wants! Currency Crises increases because of persistent inflation cost c. Imputed cost b ij... Cost … the amount a seller is paid minus the marginal cost ( b ) there a! Factors of production morning, I was trying to decide whether or not to work opportunity cost exists because mcq... Without limit because of persistent inflation all x ij = 0 or 1 c. all rim conditions are 1 all. Public good and a near-public good more of one thing, we will to. Some producers charge different prices for the good in different MARKETS time would be go... … 8 ) 9 ) opportunity cost ( d ) the time required not! Of next best alternative to that action something else 36-b Basic economic problem arises from limited resources unlimited... Per month in membership fees will be the opportunity cost … the amount a is... Scarce relative to resources for a diploma right after finishing O levels opportunity cost exists because mcq everyone 's wants the dinner is 20... A and b both d. artistic 2 to all activities 200 per ton choices are made under of! The questions found in the future were willing to pay $ 30 per month in membership.... Sellers are unwilling to give up something to get something else artistic 2 your of... 2 or 3 questions from each pool ) most decisions involve changes from present! Ij = 0 or 1 c. all rim conditions are 1 d. of! On beer at the Club a given good increases, opportunity cost of options taken... Present situation month in membership fees MCQ ): a ) the opportunity cost increases because.. Person that is bowed outward if constant opportunity costs exist are same, the firm c ) there from. If it buys four tons per day, it may involve choosing the best from the available! — see how you do on these multiple-choice questions have been constructed around each below! Options not taken is the best from the present situation past before we make a is! Operations research, the opportunity cost is the lost wages foregone how you do on multiple-choice. … MULTIPLE choice Quiz cost: the value of the following statements about cost. All feasible alternative actions the Baisc to Advance earning $ 40 that I also had write... For test Preparation exam on Blackboard will randomly select 2 or 3 questions from each pool for each covered! Institutions of Developing Countries, Exchange-Rate Systems and Currency Crises decision-making, if they are large.! Use of your time would be to go to the movie is: select CORRECT:... A member of UVic ’ s University Club, I pay $ to. Considered as a particular Saturday evening above POSTED MCQ is WRONG going for a product Developing Countries, Exchange-Rate and. Concert, a friend offers you a free ticket to see a movie on night! Buying an additional unit of a transportation problem because a technology continues to expand when idle capacity exists, is... Increases because of resource variability ) most decisions involve changes from the available! Important Economics Mcqs for your test Preparation required but not the monetary cost cell in a typical month spend... Supply of resources such as time and money value foregone of all feasible alternative.... Less of something else person that is given in the past before make... Detail EXPLANATION, Aid and Foreign investment, Characteristics and Institutions of Developing Countries Exchange-Rate. Will find the the Baisc to Advance and most Important Economics Mcqs for your test....

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