ANSWER:
d
161. What does the opportunity cost of an action include?
a.
the highest-valued alternative use of the time spent on the action
b.
the total benefits received as a result of the action
c.
the lowest valued alternative use of the time spent on the action
d.
the net benefits received as a result of the action
ANSWER:
a
162. What is the opportunity cost of an action equal to?
a.
the highest-valued alternative sacrificed as a result of the action
b.
the sum of the benefits received as a result of the action
c.
the monetary benefit received as a result of the action
d.
the value of any alternative use of the time expended on the action
ANSWER:
a
163. Which of the following statements about the opportunity cost of an action is the most accurate?
a.
It can be objectively determined only by economists.
b.
It can be determined by considering both the benefits and the monetary costs incurred as a result of the action.
c.
It is a subjective valuation that can be determined only by the individual who chooses the action.
d.
It can be determined by adding up the bills incurred as a result of the action.
ANSWER:
c
164. Which of the following does the term "opportunity cost" refer to?
a.
the price paid for the opportunity to buy stock in an initial public offering
b.
the finder's fee paid to a job placement agency for locating employment for workers
c.
the dollar price paid for a good
d.
the value of the best forgone alternative
ANSWER:
d
165. Which of the following statements about the opportunity cost of an action is the most accurate?
a.
It is the same for everyone who undertakes the action.
b.
It is the difference between the benefits that result and the expenses incurred as a result of the action.
c.
It is the value of the best forgone alternative.
d.
It is the same as the expected benefit of the action.
ANSWER:
c
166. What is the term for the highest-valued alternative sacrificed as a result of a choice?
a.
the explicit cost, which can be objectively measured by anyone
b.
the explicit cost, which can be subjectively measured only by the individual who chooses
c.
the opportunity cost, which can be subjectively measured only by the individual who chooses
d.
the opportunity cost, which can be objectively measured by anyone
ANSWER:
c
167. Resources are in limited supply; therefore, to acquire more of a good, we must sacrifice production of another good. What concept does this statement illustrate?
a.
ceteris paribus
b.
specialization
c.
opportunity cost
d.
exchange
ANSWER:
c
168. Which statement best describes the opportunity cost of an airplane flight?
a.
It is identical for all passengers and equal to the number of hours a particular flight takes.
b.
It differs across passengers to the extent that both the airfare paid, and the highest-valued use of travel time will vary.
c.
It is equal to the cost of a bus ticket, the next best form of alternative transportation to flying.
d.
It differs across passengers only to the extent that each traveller pays a different airfare.
ANSWER:
b
Table 1-1
Possibility
Economics
Marketing
I
96
70
II
88
79
III
79
86
169. Refer to Table 1-1. A student has only a few hours to prepare for two different exams this afternoon. Table 1.1 shows alternative possible exam scores with three alternative uses of the student's time. What is the opportunity cost of scoring a 96 on the economics exam rather than a 79?