Question 1

The opportunity cost of an activity is best measured

Accepted Answer

The opportunity cost of an activity is the value of the next best alternative forgone in making a particular choice. It is not solely based on the monetary costs or the number of alternative activities forgone. Therefore, option D is the correct answer as it measures the cost difference between the chosen activity and the best alternative that was forgone.

Question 2

Opportunity cost is the difference between the benefits and the costs of a choice.

Accepted Answer

False

Question 3

The opportunity cost of an activity

Accepted Answer

The opportunity cost of an activity depends on the individual's subjective values and opinions. Therefore, the best choice would be to consider the individual's own preferences and priorities when making a decision.

Question 4

A rational decision maker engages in an activity if that activity is more attractive than the best alternative.

Accepted Answer

This statement accurately reflects the basic principle of rational decision making, which involves choosing the best option from among available alternatives. If an activity is more attractive than the other alternatives, a rational decision maker would choose to engage in that activity.

Question 5

Opportunity cost is defined

Accepted Answer

Opportunity cost is the value of the best alternative not chosen. It's not just the value of all alternatives not chosen, but specifically the best alternative. So option C is the correct definition of opportunity cost.

Question 6

Your opportunity cost of choosing a particular activity

Accepted Answer

Opportunity cost varies based on the time and circumstances because the cost of a particular activity may change depending on the situation. For example, the opportunity cost of going to a job interview may be higher if it clashes with a personal event like a wedding that you have to attend. Therefore, the best answer is D, which acknowledges the dynamic nature of opportunity cost.

Question 7

A university should not disband its football team if it has already paid for the stadium.

Accepted Answer

The answer of A university should not disband its football...

Question 8

Suppose you have an hour before your next class starts.You can either read a book,get something to eat,or take a nap.The opportunity cost of getting something to eat is

Accepted Answer

The answer of Suppose you have an hour before your...

Question 9

Opportunity cost is objective; therefore,its value does not change as circumstances change.

Accepted Answer

Opportunity cost can change as circumstances change. It is not a fixed value and can vary depending on the context and alternatives being considered.

Question 10

If you enjoy playing golf,the opportunity cost of cleaning your room

Accepted Answer

The answer of If you enjoy playing golf,the opportunity cost...

Question 11

The term opportunity cost suggests that

Accepted Answer

The term opportunity cost refers to the fact that because goods are scarce, in order to obtain a good, one must give up something else in return. This is known as the opportunity cost, or the next best alternative forgone. Therefore, the best choice is E.

Question 12

Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles from home.Which of the following is the most likely explanation for her behavior?

Accepted Answer

The answer of Melissa is a self-employed lawyer who chooses...

Question 13

Opportunity cost is always measured in dollar terms,rather than in terms of real goods and services.

Accepted Answer

Opportunity cost can be measured in terms of real goods and services, not just dollars. It represents the value of the next best alternative foregone when making a decision.

Question 14

Opportunity cost exists because

Accepted Answer

Opportunity cost exists because resources are scarce but wants are unlimited. This means that we must make choices about how to allocate our resources and that choosing one option means giving up the benefits of another option. This is the essence of opportunity cost. A, B, D, and E are not accurate explanations of why opportunity cost exists.

Question 15

A test was scheduled for Monday morning,but you went to a party on Saturday night.If you hadn't attended the party,you could have studied for the test or gone to a movie.Which of the following is true?

Accepted Answer

The answer of A test was scheduled for Monday morning,but...

Question 16

Suppose you have purchased a non-refundable plane ticket and,at the last moment,you cannot take the trip.You can,however,sell the ticket.If you paid $700 for the ticket,the cost of sending the ticket to someone through overnight mail is $20,and you spend $10 on a courier to get the ticket to the post office for overnight delivery,what is the minimum you should accept for the ticket?

Accepted Answer

The answer of Suppose you have purchased a non-refundable plane...

Question 17

The opportunity cost of a particular activity

Accepted Answer

The answer of The opportunity cost of a particular activity
...

Question 18

The Sultan of Brunei,one of the world's richest people,does not face the problem of scarcity.

Accepted Answer

The answer of The Sultan of Brunei,one of the world's...

Question 19

Which economic concept does the expression "time is money" reflect?

Accepted Answer

The expression "time is money" reflects the concept of opportunity cost, which is the idea that the cost of a particular choice is the value of the next best alternative that must be given up in order to pursue that choice. In other words, when a person spends time working or doing a particular task, they are giving up the opportunity to do something else with that time, such as leisure activities or other work. Therefore, time can be seen as a valuable resource that has an opportunity cost associated with it.

Question 20

The opportunity cost of an activity is

Accepted Answer

Opportunity cost is the value of the best alternative not chosen. It is what you give up to choose one option over another. This cost may not always be monetary, but it represents the benefits sacrificed from all other possible alternatives. Therefore, option C is the correct choice.

Quiz 2: Economic Tools and Economics Systems