The opportunity cost of the decision to invest in stock is the value of the interest. PDF Production Possibilities Curve For example, the opportunity cost of you being here is the salary you could be making if you remained in the workforce. Computer Based Optimization Techniques - Questions ... Answer to Question: a. The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want. c. Questions and Answers on Managerial Economics - UKEssays.comPDF Practice Questions and Answers ... - Pepperdine University So the lost income through opting for the extra leisure hour is 4 pounds, the opportunity cost. Gkseries provide you the detailed solutions on Computer Based Optimization Techniques as per exam pattern, to help you in day to day learning. Answer each question with a complete sentence on a separate piece of paper. Please note that the questions below w i l l n o t appear on your exam. Starting from the original production point, the opportunity cost of producing one more bushel of wheat must be higher than 1.7 bushels of corn. . Assume Tony's T-shirts makes shirts for local soccer, baseball, basketball, and other sports teams. Comparative advantage. Production possibilities curve. You can use the example portion at the bottom as either a summative or formative assessment. Answer: (d) All of these. The opportunity cost question we presented to respondents was adapted from page 4 of Robert Frank and Ben Bernanke's textbook, Introduction to Microeconomics (2001), and was presented exactly as follows to ASSA survey respondents:3 Please Circle the Best Answer to the Following Question: You won a free ticket to see an Eric Clapton concert (which Finally, only indirect costs are considered opportunity costs. a. have to give up, that is, the opportunity cost? A cost that cannot be avoided, regardless of what is done in the future. Suppose massive new sources of oil and coal are found within the economy and there are major technological innovations in both sectors of the economy. The opportunity cost of a yard of cloth for William is 3 pounds of food and the opportunity cost of one yard of cloth for Calvin is 1/2 pound of food. b. Answer the following questions: a. 1. These quiz objective questions are helpful for competitive exams. Explicit costs a. Use the PPF below to answer the following questions. Answer: (a) Economic problem . (D) the cost of all alternative actions that could have been taken. B) a comparison of real GDP in one period relative to another. b. B)the difference between one price and another. D) a ratio of real GDP to nominal GDP. The cost of opportunity is the worst of the various alternatives to be abandoned when the choice is made in the face of scarcity. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. Fixed resources 2. Takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions b. 3. Study Questions (with Answers) Page 1 of 7 (9) Study Questions (with Answers) . Every time someone makes a choice, there are other things that are not chosen. 1) A relative price is A)the ratio of one price to another. Martha's opportunity cost of making a pie is: a) 3/4 of a cake b) 4/3 of a cake c) 8 cakes d) 80 cakes. Define opportunity cost and provide an example? (a) Cash flows be calculated in incremental terms,(b) All costs and benefits are measured on cash basis, More specifically, it is the value of the next best alternative. (A) its explicit costs are least. Takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions b. Assume the following schedule for producing TVs Quantity of TVs Marginal Benefit (MB) (Dollars earned from a sale) Marginal Costs (MC) (Production costs) Direct Taxes: Is the tax the government collects directly from the people. View Answer. The next best thing that is not chosen is called a person's opportunity cost. A relevant purchase order costs. Value of the best alternative sacrificed as compared to what actually takes place II. It is the value of the next best alternative foregone. Check the below NCERT MCQ Questions for Class 11 Economics Chapter 1 Introduction to Micro Economics with Answers Pdf free download. ECON 50 - PRINCIPLES OF ECONOMICS QUESTIONS FOR QUIZ 1 - ANSWERS Opportunity Cost and Gains from Trade 1) Suppose comparative advantage. Opportunity Cost. Boston has lower opportunity costs in producing white socks (1 < 2) and Chicago has lower opportunity costs in producing red socks (0.5 < 1). Mu l ti p l e -C h o i c e 1. If Athletic Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional 100 bats? we measured in Questions 2 and 3 . Opportunity Cost Define and describe opportunity cost. Giving the chance or opportunity of having the orange, would be the opportunity cost. The answer to this question is obviously yes. Answer to Question: a. Opportunity cost: Ans: The value of the best foregone . Production Possibilities 1.3 Trade offs and opportunity costs can be illustrated using a Production Possibilities Curve. First, (a) Leftward Shift (b) Unchanged PPC (c) Rightward Shift (d) None of the above. One of the opportunity costs of going to college is not being able to take a job. Given 2 assumptions: 1. 16. A rational decision maker does which of the following? Expenses that are paid with cash or equivalent b. Strategic Management Multiple Choice Questions and Answers pdf | Strategic Management MCQ with Answers pdf download for all Exams. 3. 2. The last option is the most attractive, so Cliff should be the first who is assigned to do the posters. Refer to the table below. 1. 1 Scarcity, Opportunity Costs, and Basic Economic Questions. Select one that is best in each case. you prepare to answer test questions can be found on page 36. Question 4. The owner, Tony, purchases the shirts and prints graphics on the shirts for each team. Without trade, in Boston the price of 1 pair of red socks would be 1 pair of white socks, whereas in Chicago 1 pair of red socks would be exchanged for 0.5 pair of white socks. NOTE: THAT CURVE "BB" IS THE CURRENT FRONTIER FOR THIS ECONOMY. Teacher Login | Student Login Econ lowdown opportunity cost answers. 0 Computers. 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