Practice Questions
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When deciding whether to spend money on a new car or save for a vacation, what does opportunity cost represent in this scenario?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think opportunity cost is just the car's p...
If Sarah decides to spend her Saturday working on a freelance project that pays $150 instead of going to a concert that costs $50, what is her opportunity cost in terms of marginal cost?
Sarah's opportunity cost is $100. Other options are incorrect because This answer suggests that the concert ticket price is the only cost; This answer...
If a student decides to spend a year traveling instead of attending university, and the tuition fees for that year are $10,000, what is the student's opportunity cost if they also forgo a potential job earning $20,000 during that year?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because This answer only considers the tuition fees; This ans...
When making a decision between two investment options, how does one calculate the opportunity cost, and why is it vital in cost-benefit analysis?
To find the opportunity cost, you look at what you give up. Other options are incorrect because This answer suggests you only look at costs, not retur...
In a decision-making scenario for a business considering two investment options, how can a decision matrix help quantify opportunity costs and improve business strategy?
A decision matrix shows the possible gains and losses for each choice. Other options are incorrect because Some might think a decision matrix removes ...
If a student decides to spend the evening studying for an exam instead of going to a concert, what is the opportunity cost of their decision?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the knowledge gained is the cost...
If you choose to spend your Saturday working at a part-time job instead of attending a concert, what is the opportunity cost of your decision?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the money is the cost, but that'...
If a student decides to spend an hour studying economics instead of working at a part-time job, what is the opportunity cost of studying?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the knowledge is the cost, but it's ...
When evaluating the opportunity cost of choosing to produce one good over another, the value of the next best alternative that is forgone is known as __________.
Opportunity cost is what you give up when you choose one option over another. Other options are incorrect because Marginal cost is about the cost of p...
If Robert decides to spend an entire day making coconuts instead of palm leaves, what is the underlying reason for this choice in terms of opportunity cost?
Robert thinks coconuts are more valuable than palm leaves. Other options are incorrect because This suggests Robert can make both without limits; This...
Which of the following statements accurately describe opportunity costs in the context of trade? Select all that apply.
Other options are incorrect because This idea suggests that only money matters when making choices; This statement misses the point that opportunity c...
If Robert decides to produce more coconuts, what is the opportunity cost of this decision?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the total number of coconuts is the ...
Arrange the following steps in the correct order for calculating opportunity costs in a trade scenario: A) Identify the alternatives available, B) Determine the value of the next best alternative, C) Make a decision based on the identified values, D) Compare the efficiency of production for each alternative.
First, you need to identify your choices. Other options are incorrect because This option suggests comparing efficiency before identifying choices; Th...
If choosing to produce more of Product A results in the sacrifice of Product B, then choosing to produce more of Product C should result in the sacrifice of which of the following? A: Product D
When you decide to make more of one product, you often have to give up making another. Other options are incorrect because Some might think that any p...
Maria can either spend her Saturday working at a local café earning $100 or volunteering at an animal shelter where she will not earn any money. If she chooses to volunteer, what is the opportunity cost of her decision?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the good feelings from volunteer...
If Robert decides to produce more palm leaves instead of coconuts, what does this imply about his opportunity cost?
When Robert makes more palm leaves, he gives up the chance to make coconuts. Other options are incorrect because This idea suggests he can benefit fro...
When analyzing Robert's decision to produce either coconuts or palm leaves, which category best describes the concept of opportunity cost in this scenario?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because This option talks about how many coconuts Robert can ...
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