Opportunity cost only measures direct monetary costs. 37-C Opportunity cost is the benefit of next best alternative forgone. ... Q. Some producers charge different prices for the good in different markets. Case Problem Sets. Which of the following was relevant to this decision? ... Scarcity is a condition that exists when. Suppose you have bought and paid for a ticket to see Kanye in concert. Scarcity: A. exists because resources are limited while human wants are unlimited. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. You are willing to pay $20 to see the movie and the movie ticket costs $5. Positive because price exceeds average total costs. 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. Distinguish between a pure public good and a near-public good. D) curve that is bowed outward if constant opportunity costs exist. D)marginal revenue equals marginal cost. c. functional costs. Which of the following statements about opportunity cost is TRUE? B. a cost that cannot be avoided. C. that which we forgo, or give up, when we make a choice or a decision. 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 … ... a. opportunity costs. Opportunity cost: The value of the next-best alternative when a decision is made; it's what is given up. Microeconomics Multiple choice questions. A. economical B. scientific C. a and b both D. artistic 2. B. Opportunity cost c. Imputed cost d. Notional cost 42. Opportunity cost is equal to implicit costs plus explicit costs. Opportunity cost c. Imputed cost d. Notional cost 42. Results from past managerial decisions. 35) 36)In the above table, the firm SURVEY . Glossary. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. Suppose that you are willing to pay $350 to see Leonard Cohen play at the Save-On-Foods Arena. This morning, I was trying to decide whether or not to actually go to the gym. D) much economic behavior is irrational. 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. d) I and III only. to explain this behaviour. ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identify the choice that best completes the statement or answers the question 1. b) The $300 I spent on gym clothes. A. the cost incurred in the past before we make a decision about what to do in the future. 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 Which of the following statements about opportunity costs is TRUE? A. the cost incurred in the past before we make a decision about what to do in the future. It improve the total cost b. B)the highest-valued alternative forgone. For an individual, it may involve choosing the best from the choices available. D. is not an issue addressed in economics. 13. Risk neutral. 1) The best definition of economics is. A) how choices are made under conditions of scarcity. C)the monetary costs of an activity. d) I and III only. 36-B Basic economic problem arises from limited resources and unlimited wants. 1.1 What Is Economics, and Why Is It Important? 2. 8. Required fields are marked *. A reduction in investment will be the opportunity cost of increased subsidies to farmers. On the day of the concert, a friend offers you a free ticket to the opera instead. 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. The opportunity cost of going to the movie is: 4. C)$147. increase even though his explicit costs would rise, because he would now be free to earn $20/hour giving banjo lessons. Multiple-Choice Questions. a. Sunk cost b. Opportunity costs exist because: A) using resources for one activity means that their use elsewhere must be given up. B)$150. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. regardless of what is done in the future C. that which we forgo, or give up, when we make a choice or a decision. 2. The opportunity cost minus the cost of producing goods that go unsold. B)total revenue equals total opportunity cost. 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. b) II only. 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. 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. Which of the following is the best definition of managerial economics? 2. (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. 11. What is the opportunity cost to me of the loan to my brother? Web Links. Opportunity cost only measures direct monetary costs. For an individual, it may involve choosing the best from the choices available. Opportunity costs only measure direct out of pocket expenditures. 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. 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) III only. The opportunity cost of seeing the movie is equal to: 6. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. B) most decisions involve changes from the present situation. 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. C) curve that is bowed outward if increasing opportunity costs exist. Externalities exist … Assuming the working conditions are same, the opportunity cost … The opportunity cost of seeing Leonard Cohen is equal to: 9. I also spent $300 on extremely stylish gym clothes. There are from 10 to 40 questions in each pool. A) there is a fixed supply of resources. D)$180. C)economic profit is maximized. According to marginal analysis, optimal decision-making involves: a) Taking actions whenever the marginal benefit is positive. The economic concept of "opportunity cost" is most closely associated with which of the. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. a. Sunk cost b. You can resell your Kanye ticket for $80. b) I B) resources are being used inefficiently. The exam on Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam. Tags: Question 8 . d) None of the statements is true. I am considering loaning my brother $10,000 for one year. MULTIPLE CHOICE QUESTIONS DECISION SCIENCE 1. Online Resources. B. means we are unable to have as much as we would like to have. 1. 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. Operations research is the application of _____methods to arrive at the optimal Solutions to the problems. B. a cost that cannot be avoided. Opportunity Cost . Concept Check — See how you do on these multiple-choice questions. 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. D) buyers always have an opportunity to go to another seller. The golf takes four hours to play. a) II and III only. The opportunity cost of your golf game is: 7. 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. Multiple Choice Quiz. Suppose you play a round of golf costing $75. D) resources are not equally suited to all activities. Multiple Choice Quiz. The number of rows equals columns b. Choice is necessary because of limited wants. Q15(MCQ): A person has three job offers of Rs 10000, Rs 20000, and Rs 30000 respectively. D. the additional benefit of buying an additional unit of a product d) All of the above. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. Your email address will not be published. D)marginal revenue equals marginal cost. 36-B Basic economic problem arises from limited resources and unlimited wants. D)$180. C)$147. d) All of the above were relevant. Suppose you have bought and paid for a ticket to see Lady Gaga in concert. Which of the following statements about opportunity cost is TRUE? regardless of what is done in the future The relevant cost of any decision is its opportunity cost - the value of the next-best alternative that is given up. Describe the opposing views of public choice. B) The value of the dollar has diminished historically because of persistent inflation. Economists use the term . 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