a.
financial; marginal
b.
opportunity; nonfinancial
c.
opportunity; financial
d.
nonfinancial; financial
ANSWER:
c
39. Opportunity cost arises from the fundamental economic problem of
a.
interdependence.
b.
marginal costs.
c.
unlimited resources.
d.
scarcity.
ANSWER:
d
40. The opportunity costs of attending college includes the
a.
cost of tuition.
b.
cost of room and board.
c.
cost of clothes to wear at school.
d.
time spent studying.
ANSWER:
a
41. The opportunity costs of attending college include the:
a.
potential income that could be earned working.
b.
cost of room and board.
c.
cost of clothes to wear at school.
d.
effort and hard work.
ANSWER:
a
42. The opportunity costs of a decision may include each of the following types of costs EXCEPT
a.
out-of-pocket financial costs.
b.
forgone financial costs.
c.
sunk costs.
d.
nonfinancial costs.
ANSWER:
c
43. Jonathan Mendez is deciding whether to study for his economics exam at a café or go to a concert with friends tonight. The cost of dinner at the fancy restaurant on the way to the concert is ____ in the calculation of his opportunity cost and represents a _____ cost.
a.
included; financial
b.
included; nonfinancial
c.
not included; financial
d.
not included; sunk
ANSWER:
a
44. Jonathan Mendez is deciding whether to study for his economics exam at a café down the street or go to a concert a few cities over. The time spent commuting to the concert is ____ in his opportunity cost calculations and represents a _____ cost.
a.
included; financial
b.
included; nonfinancial
c.
not included; financial
d.
not included; sunk
ANSWER:
b
45. Jonathan Mendez is deciding whether to study for his economics exam at a café or go to a concert with friends tonight. The cost of tuition for his economics course is _____ in his opportunity cost calculations for this decision and represents a _____ cost.
a.
included; financial
b.
included; nonfinancial
c.
not included; financial
d.
not included; sunk
ANSWER:
c
46. It is a beautiful afternoon, and you are considering taking a leisurely stroll through the park. Your alternatives to walking are streaming a movie that you value at $5, taking a nap that you value at $7, or reading a new book that you value at $12. What is the opportunity cost to you of taking the stroll through the park?
a.
$0
b.
$5
c.
$7
d.
$12
ANSWER:
d
47. Sunk costs are costs that are incurred
a.
regardless of which decision is made.
b.
if a particular decision is made.
c.
if a particular decision is not made.
d.
only for some decisions.
ANSWER:
a
48. Sunk costs should ____ be considered as part of the opportunity costs of a decision.
a.
always
b.
never
c.
sometimes
d.
rarely
ANSWER:
b
49. Sunk costs are costs that
a.
are potential costs associated with a particular decision.