152. Which of the following is considered a "bad"?
a.
garbage
b.
garbage removal
c.
steel
d.
automobiles
ANSWER:
a
153. Paddy decides to spend an hour playing video games rather than studying. What is his opportunity cost?
a.
The increase in skill he obtains from strategically choosing video game players for that hour.
b.
Nothing, because he has an unlimited free licence for the video games he likes best.
c.
The improvement to his grades from studying for an hour.
d.
Nothing, because he is better at playing video games than studying.
ANSWER:
c
154. What is the opportunity cost of an action equal to?
a.
the highest-valued opportunity that must be sacrificed in order to take the action
b.
the value of all of the alternative actions that could have been taken
c.
the total time spent by all parties in carrying out the action
d.
the monetary payment the action required
ANSWER:
a
155. What is included in the opportunity cost of going to college or university?
a.
both tuition and the value of the student's time
b.
tuition, but not the value of the student's time, which is a cash cost
c.
tuition, but not the value of the student's time, which is a monetary cost
d.
neither tuition nor the value of the student's time since obtaining post-secondary education will lead to higher income in the future
ANSWER:
a
156. Which of the following statements best describes the idea of opportunity cost and writing a test?
a.
There is no opportunity cost of writing a test because it applies only to people who are working.
b.
There is no opportunity cost of writing a test because tests are so important.
c.
The opportunity cost of writing a test is the wages given up from not working plus the loss of time studying for another test.
d.
The opportunity cost of writing a test is the time given up for doing an important assignment for another class.
ANSWER:
d
157. Which of the following statements about the opportunity cost of an item is the most accurate?
a.
It is the value of all available alternatives you sacrifice to get that item.
b.
It is always equal to the dollar value of the item.
c.
It is greater during periods of inflation and lower during periods of deflation.
d.
It is the highest-valued alternative you give up to get that item.
ANSWER:
d
158. "If I didn't have class today, I would save the $10 campus parking fee and spend three hours at work where I earn $20 per hour." What is the opportunity cost of attending class today?
a.
$0
b.
$10
c.
$60
d.
$70
ANSWER:
d
159. Which of the following statements best describes opportunity costs?
a.
The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.
b.
Some economic decisions have zero opportunity cost.
c.
The opportunity cost of a decision is the value of the best forgone alternative.
d.
The opportunity cost of a decision is equal to the explicit cost in monetary terms.
ANSWER:
c
160. Which of the following statements about opportunity costs is the most accurate?
a.
They never involve costs paid out-of-pocket.
b.
They include only explicit costs paid out-of-pocket.
c.
They always include costs paid out-of-pocket.
d.
They may or may not involve costs paid out-of-pocket.