a.
7 points on the marketing exam
b.
9 points on the marketing exam
c.
16 points on the marketing exam
d.
17 points on the marketing exam
ANSWER:
c
170. Refer to Table 1-1. A student has only a few hours to prepare for two different exams tomorrow morning. 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 79 on the marketing exam rather than a 70?
a.
10 points on the economics exam
b.
9 points on the economics exam
c.
8 points on the economics exam
d.
17 points on the economics exam
ANSWER:
c
171. What is the opportunity cost of attending an NHL hockey game?
a.
the sum of the value of all the alternative uses of your time while at the game
b.
the price of the admission to the game
c.
the value of the highest alternative use of your time and money sacrificed as a result of attending the game
d.
zero if your favourite team wins
ANSWER:
c
172. Tywane’s boss offers him twice his usual wage rate to work tonight instead of going with his friends to a basketball game. Which of the following is the likely outcome of this offer?
a.
It will decrease the opportunity cost of going to the basketball game because Tywane really needs the money.
b.
It will increase the opportunity cost of going to the basketball game
c.
It will not affect the opportunity cost of going to the basketball game.
d.
It will reduce the opportunity cost of going to the basketball game because giving up the additional work dollars is worth it since his friends are a lot of fun.
ANSWER:
b
173. A university offers a free shuttle service around campus. What is the opportunity cost of the shuttle service equal to?
a.
the wages paid to the shuttle drivers, plus the gasoline expenses
b.
the wages paid to the shuttle drivers
c.
the highest-valued alternative use of the resources devoted to the shuttle program
d.
zero, since it is free to students who want to ride
ANSWER:
c
174. What is the likely reason that hotels might restrict the use of frequent stay points during holiday periods?
a.
The opportunity cost to hotels of filling rooms with frequent stay points is lower at these times.
b.
Hotels want to protect their most loyal customers from the discomfort of overcrowded properties.
c.
The opportunity cost to hotels of filling rooms with frequent stay points is higher at these times.
d.
Travellers have more accommodation alternatives available to them at these times.
ANSWER:
c
175. Which of the following is the opportunity cost of attending university NOT likely to include?
a.
the cost of required textbooks
b.
tuition fees
c.
the income you forgo in order to attend classes
d.
the cost of rent during the school term
ANSWER:
d
176. What is the opportunity cost of attending a university for a year?
a.
the size of the student loans the student becomes responsible for
b.
the tuition fees incurred
c.
the value of the best opportunity or opportunities forgone in order to enrol for the year
d.
the sum of all expenditures on rent, food, books, and tuition incurred during the school year
ANSWER:
c
177. Mahmoud and Kamal both attend the same college and incur the same expenses for tuition, books, and school supplies. Mahmoud gave up a lucrative job at his family’s car dealership to attend school full time and Kamal gave up a part-time job as a sales clerk in a department store. Which of the following statements about opportunity cost is the most accurate?