Opportunity cost is. Best shape of PPC reflects (a) diminishing opportunity cost (b) constant opportunity cost (c) increasing opportunity cost (d) None of these Answer: (a) diminishing opportunity cost. Define: opportunity cost Answer The benefit foregone of the best alternative - which is sacrificed when making a decision. PDF Opportunity Cost | Worksheets | Business | tutor2u Question 31. The graphics were designed several years ago, so design costs are no longer incurred. 1. Chapter 3 - Demand and Supply - Sample Questions Answers are at the end fo this file MULTIPLE CHOICE. C)the slope of the supply curve. Value of the best alternative sacrificed as compared to what actually takes place II. PDF Cost and Management Accounting-615A Multiple Choice Questions. View Answer. Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action (foregone profit). Production Possibilities Curve Answers Directions: Use the information in FIGURE 1 PPC to answer the following questions about the Alpha economy. Direct Taxes: Is the tax the government collects directly from the people. PDF Lesson 1: Scarcity and Choice - Social Studies Curriculum Choose the one alternative that best completes the statement or answers the question. C $160. Students can fill out each portion of the notes as you teach each concept. The concept of 'Strategic window' was introduced by ___. Ch 5: Techniques of project valuation: NPV, IRR, etc Ch 5 8 Payback Consider the . Economics 165 Practice Exam Questions - Dr. Reed Olsen PDF Production Possiblities Curve Answers - EconEdLink Assume Tony's T-shirts makes shirts for local soccer, baseball, basketball, and other sports teams. PDF Production Possibilities Curve Opportunity cost . Check the below NCERT MCQ Questions for Class 11 Economics Chapter 1 Introduction to Micro Economics with Answers Pdf free download. Answer to Question: a. More specifically, it is the value of the next best alternative. Our country's national security Ensuring the welfare of all citizens Directions: Answer each of the following scenarios by writing the letter of the correct multiple‐choice question on the line. 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. The pay increase if the extra leisure hour is taken is 260-240 pounds = 20 pounds per week. The PPF can be used to calculate the opportunity cost of various production decisions. Scarcity, Opportunity Costs, and Basic Economic Questions: The Production Possibility Model: The Market: Demand and Supply: Market Equilibrium and Applications: Elasticity: Consumer Choice: The Firm and Production: Short-Run Production and Costs: Long-Run Production and Costs: Market Structure: Perfect Competition: Market Structure: Monopoly (PDF) CHAPTER 2 SUPPLY AND DEMAND Answers to Review ... The opportunity cost of moving from a to b is… Maximum efficiency. Answer: Opportunity cost is the cost of the next best alternative use. Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. Opportunity Costs - revenues (or profits) foregone by choosing an alternate course of action. EC 200 Practice Problems - Opportunity Cost PDF The Economic Problem: Scarcity and Choice That which we forgo, or give up, when we make a choice or a decision. Sunk Costs - outlays of resources or effort from past periods. Practice: Opportunity cost and the PPC. 8 Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as. NOTE: THAT CURVE "BB" IS THE CURRENT FRONTIER FOR THIS ECONOMY. Practice Questions and Answers from Lesson I -3: Trade 4 because we know that opportunity costs are increasing. These quiz objective questions are helpful for competitive exams. Answer to Question: a. D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. Answer each question with a complete sentence on a separate piece of paper. time and effort an owner puts into maintaining a company, rather than expanding it III. 3. A growth of resources in an economy is shown in PP by. Mu l ti p l e -C h o i c e 1. d. By choosing to go to college, you give up the income you would have earned on the job and the valuable on-the-job experience you would have acquired. A cost that cannot be avoided, regardless of what is done in the future. Production Possibilities Curve as a model of a country's economy. 33. 1. Given 2 assumptions: 1. Mike - wash dishes . 33) With appropriate examples, define the difference between direct and indirect taxes. 41) 42)The loss of the highest-valued alternative defines the concept of A . Questions Microeconomics (with answers) 1a Markets, demand and supply 01 Price and quantity 1 Price Demand Supply 0 100 0 1 80 30 2 60 60 3 40 90 4 20 120 5 0 150 Draw demand and supply using a graph. (B) the total time spent by all parties in carrying out the action. Production Possibilities 1.3 Trade offs and opportunity costs can be illustrated using a Production Possibilities Curve. you prepare to answer test questions can be found on page 36. The next best thing that is not chosen is called a person's opportunity cost. (C) the cost of real resources used is least. 4 Computer. 21. have to give up, that is, the opportunity cost? Business Economics Multiple Choice Questions and Answers PDF. The cost of watching TV is the opportunity cost, which equals to the forgone benefit of studying economics. B) a comparison of real GDP in one period relative to another. . The answer to this question is obviously yes. (l) ABC's opportunity cost of producing a unit of cars is 0.8 units of planes. 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. 1 Scarcity, Opportunity Costs, and Basic Economic Questions. According to the theory of competitive advantage, specialization and free trade will benefit all trading parties, even those that may be absolutely more efficient producers. College student had he or she worked full time instead of attending college computer is 1/5 of car., books, supplies, and graphics were designed several years ago, so he has a value alternative.! 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