>> 3 0 obj (d) Along a bowed out PPF as more of a good is produced, the opportunity cost of producing it decreases. The opportunity cost of the new design of the product will be the increased cost and its inability to compete on price. It is important to learn to make good economic choices, or decisions. stream Opportunity Cost Examples. 2017/2018 Opportunity costs are truly everywhere, and they occur with every decision we make, whether it’s big or small. b. /Height 155 4 0 obj MCQ quiz on Microeconomics multiple choice questions and answers on Microeconomics MCQ questions on Microeconomics objectives questions with answer test pdf for interview preparations, freshers jobs and competitive exams. ÉP¦Í%9ÿ€òãÓÛÃÓ>dYY²k7òÌ�gëÔ°Vğ�"…¥^jê)&bL#[9Š*`‡Ğ÷$�šNõrï…ˆ?#-£rõY±7ÌRg>s¥ø(‡ãÌÄEô³ê„!Ç•wã@¥NÙŞ73û ¡©�É®’YM¼Á®_`+¥jmöîbİÕ›¬'aäŠla½ä…ò. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. 8. What theoretical pedagogy can't drive in, practical examples do! Academic year. A)the question "what." A. the opportunity cost of producing 200 guns instead of 100 guns is 750 units of bread. 1 2 . $ @H* �,�T Y � �@R d�� ���{���ؘ]>cNwy���M� Opportunity cost is equal to implicit costs plus explicit costs. /ColorSpace /DeviceRGB 9. A B c D Reduced specialisation of labour Why? Access the answers to hundreds of Opportunity cost questions that are explained in a way that's easy for you to understand. Q. With the aid … An opportunity cost of going to college would be the four years of potential foregone earnings that could have been earned in the labor market, had the decision to go to college not been made. 6 0 obj Which of the following statements about opportunity cost is TRUE? Opportunity Cost Calculation in Excel. Answer: Opportunity cost refers to foregone earning in economics. With the largest library of standards-aligned and fully explained questions in the world, Albert is the leader in Advanced Placement®. opportunity cost—choosing to do one thing prevents us from having the opportunity to do another. These questions are from Chapter 1 Section 2. In both, the opportunity cost of 1 computer is 1/5 of a car. /SM 0.02 Nav. Academic year. II. The opportunity cost of increasing the output of consumer goods from 60m to 90m consumer goods. 3. As a society, we cannot have everything we want and so to have more of one thing, we may have to have less of another. /Length 7 0 R It is best to answer the question parts in order as The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. Also explore over 4 similar quizzes in this category. B.Capital. One-half ton of steel b. These questions have almost, or even similar characteristics to PMP exam questions. Question 18: An optimal assignment requires that the maximum number of lines which can be drawn through squares with zero opportunity cost be equal to the number of _____. Question: The invisible hand refers to: All workings must be done in the answer booklet. In both, the opportunity cost of 1 computer is 1/5 of a car. B)money C)giving up something for nothing. Mock tests should also give you a feel of the actual exam before you sit for it. 2. Define: opportunity cost Answer The benefit foregone of the best alternative - which is sacrificed when making a decision. 10. (2 marks for each good quality definition) 2 1. Other relevant costs include the one-time delivery/ packing cost of $2,000 and the (opportunity) cost of lost … Graham Dawson, who has taught economics at Bedford High School for twelve years, gives a model answer to a question that could be found in any‘A’Level examination. d. (a) The opportunity cost of moving from point b to c is 10 units of butter. The cost of opportunity is the worst of the various alternatives to be abandoned when the choice is made in the face of scarcity. Which of the following statements about opportunity cost is TRUE? 8 . Opportunity Cost Calculation in Excel. If Cliff switches to making posters, then each poster costs your team 900:3 = 300 entries. Therefore, neither has a comparative advantage in either good. A /Creator (�� w k h t m l t o p d f 0 . III. Professionals, Teachers, Students and Kids Trivia Quizzes to test your knowledge on the subject. With the aid … Present value intra-year discounting. If you make it through the mechanics of computing cost of capital, you will see it described as an opportunity cost, a discount rate and a hurdle rate for investments and it is all of the above Get help with your Opportunity cost homework. A. M arket B. Essential Question: How does scarcity relate to choice, resourc Opportunity cost only measures direct monetary costs. Every time someone makes a choice, there are other things that are not chosen. What is the Opportunity Cost of a Decision? This is easy to see while looking at the graph, but opportunity cost can also be calculated simply by dividing the cost of what is given up by what is gained. The manufacturing opportunity curve shows different combinations of output: consumers like to consume. What is the present value of $1,000 received in two years if the … /ca 1.0 � If Athletic Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional 100 bats? Mike ... comparative advantage. Gkseries provide you the detailed solutions on Business Economics as per exam pattern, to help you in day to day learning. PDF (196.08 KB) ... choice, opportunity cost and resources. Answer: No. Try this amazing Chapter 1 Section 2 Quiz (Opportunity Cost) quiz which has been attempted 2232 times by avid quiz takers. 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