Practice Questions
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What does the production possibilities frontier (PPF) illustrate regarding opportunity costs?
The PPF shows how much of two goods can be made with limited resources. Other options are incorrect because This option suggests that the PPF shows th...
When considering a decision to invest in a new business venture, if an entrepreneur chooses to not pursue a full-time job that offers a salary of $75,000, 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 profits are the cost, but th...
When a company decides to allocate resources to produce Product A instead of Product B, 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 total cost of making Product...
When evaluating a decision to invest in new equipment, a company considers the opportunity cost of not investing in employee training. If the cost of the new equipment is $10,000 and the projected benefits from training employees could lead to a $15,000 increase in productivity, what should the company prioritize according to the principles of opportunity cost and cost-benefit analysis?
The company should invest in employee training. Other options are incorrect because Some might think new equipment is always better; Focusing on sunk ...
When faced with a decision to invest in either education or starting a business, what is considered the opportunity cost of choosing education?
When you choose education, you miss out on the money you could have made from starting a business. Other options are incorrect because Some might thin...
If you decide to spend your Saturday studying for an exam instead of going to 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 ticket price is the cost; Le...
What is the opportunity cost of attending college instead of working full-time for a year?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the tuition fees are the main co...
What does opportunity cost refer to when making a decision?
Opportunity cost is about what you give up when you make a choice. Other options are incorrect because Some might think it’s just the cost of what you...
When deciding between producing coffee or wheat, Brazil must consider the __________, which represents the value of the coffee that is sacrificed to produce more wheat.
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Absolute advantage means being better at producing so...
If Brazil specializes in coffee production and Peru specializes in wheat production, what underlying economic principle explains this decision despite Brazil's absolute advantage in coffee?
Brazil has a lower opportunity cost for coffee. Other options are incorrect because This idea suggests that total output alone matters; This option as...
A farmer in Brazil can produce either 10 tons of coffee or 5 tons of wheat in a month. A farmer in Peru can produce either 12 tons of coffee or 6 tons of wheat in the same time frame. If Brazil decides to produce only coffee, what is the opportunity cost in terms of wheat production for Brazil, and how might this influence trade decisions with Peru?
If Brazil makes only coffee, it gives up the chance to grow wheat. Other options are incorrect because This answer suggests Brazil only gives up 2 ton...
Order the steps in determining opportunity costs when evaluating the production of coffee and wheat in Brazil and Peru.
First, you need to find out how long it takes to make each product in both countries. Other options are incorrect because Some might think you should ...
Which of the following scenarios best illustrates the concept of opportunity cost in international trade between Brazil and Peru?
Peru chooses to grow wheat instead of coffee. Other options are incorrect because This option suggests Brazil is just focusing on coffee; This option ...
If Brazil decides to produce more coffee instead of wheat, what could be 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 time to grow coffee is the c...
If Brazil can produce coffee in 12 hours and wheat in 4 hours, while Peru can produce coffee in 6 hours and wheat in 4 hours, which country has a comparative advantage in coffee?
Peru has a lower opportunity cost for coffee. Other options are incorrect because This answer misunderstands opportunity cost; This option misses the ...
Opportunity Cost:Coffee Production in Brazil:Wheat Production in Peru :: Opportunity Cost: ?
Opportunity cost is what you give up when you choose one option over another. Other options are incorrect because This option confuses where the coffe...
Which of the following statements correctly describe opportunity costs and their implications in decision-making? Select all that apply.
Other options are incorrect because This statement is incorrect; This is a misunderstanding....
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