Practice Questions
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If a student chooses to spend their Saturday working at a part-time job instead of studying for an exam, 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 money earned is the cost; Ti...
If a company decides to invest $100,000 in a new project instead of using that money to pay off existing debt, 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 profits from the new project are...
In the context of opportunity cost analysis, which of the following best illustrates the trade-off between scarcity and long-term versus short-term planning?
Investing in renewable energy means thinking about the future. Other options are incorrect because This choice focuses on a single decision about spen...
In the context of personal finance, how should an individual evaluate a long-term investment opportunity when considering sunk costs and opportunity costs?
It's important to look at both what you've spent before and what you might gain later. Other options are incorrect because Focusing only on past expen...
In the context of opportunity cost analysis, how can a business effectively balance trade-offs between short-term gains and long-term economic efficiency?
This answer is right because it shows that a business should think about both short-term costs and long-term benefits. Other options are incorrect bec...
What does the concept of opportunity cost refer to in economics?
Opportunity cost is about what you give up when you make a choice. Other options are incorrect because This answer confuses opportunity cost with prod...
If a student decides to spend their summer working at a part-time job instead of taking a summer course, what is the opportunity cost of this decision?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the money earned is the cost; Le...
If a student chooses to spend their Saturday working at a part-time job instead of studying for an exam, 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 money earned is the cost; Ti...
Opportunity cost is to economic decision-making as trade-off is to which of the following concepts?
A trade-off happens when you choose one thing over another. Other options are incorrect because Some might think supply and demand are about trade-off...
Arrange the following steps in the correct order to analyze opportunity costs when deciding to produce smartphones instead of burgers: 1) Identify the trade-off between the products; 2) Calculate the total resources available; 3) Determine the opportunity cost of producing one more smartphone; 4) Make an informed decision based on the opportunity costs calculated.
First, you need to know how many resources you have. Other options are incorrect because This option suggests making a decision before understanding t...
Which of the following statements accurately describe opportunity cost in decision-making? Select all that apply.
Other options are incorrect because Many people think opportunity cost is just about money; Some might believe that understanding opportunity cost doe...
A farmer has to choose between planting corn or soybeans. If he decides to plant corn, he will have to forgo the potential profits from soybeans. Which of the following best describes the opportunity cost in this scenario?
The opportunity cost is what the farmer gives up. Other options are incorrect because This option confuses profit from corn with opportunity cost; Thi...
Maria has a choice between spending her weekend working on a project that will earn her $200 or attending a concert that costs $100. If she chooses to go to the concert, what is her opportunity cost?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because This answer confuses cost with opportunity cost; This...
If a country decides to produce more smartphones, what is the likely effect on its production of laptops?
When a country makes more smartphones, it uses resources like workers and materials that could have made laptops. Other options are incorrect because ...
When deciding to produce phones instead of burgers, the _____ represents the value of the burgers that are not produced.
Opportunity cost is what you give up when you choose one option over another. Other options are incorrect because Marginal cost is about the extra cos...
If a factory decides to produce 10 phones instead of 20 burgers, what is the opportunity cost of the decision?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because This answer might come from thinking only half of...
If producing 10 phones requires sacrificing 20 burgers, what is the opportunity cost of each phone?
The opportunity cost is what you give up to get something else. Other options are incorrect because This answer suggests you lose too many burgers for...
Master Opportunity Cost Analysis
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