b.
are part of the opportunity costs of a decision.
c.
are incurred in the past and cannot be reversed.
d.
should be considered in any decision.
ANSWER:
c
50. 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 the concert ticket that he purchased yesterday is ____ in his opportunity cost and represents a _____ cost.
a.
included; financial
b.
included; nonfinancial
c.
not included; financial
d.
not included; sunk
ANSWER:
d
51. Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following EXCEPT
a.
her parents' anger if she skips the family trip to Aspen.
b.
her contribution to gas money for the drive to Destin.
c.
the ski lift ticket her parents have already purchased for her.
d.
the hotel costs she will split with her friends in Destin.
ANSWER:
c
52. Rose Riley's parents have booked a family trip to Aspen, Colorado, during her spring break. They have agreed to pay for everything except her plane ticket. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose must now decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her parents in Aspen include each of the following EXCEPT
a.
the cost of her plane ticket to Aspen.
b.
memories she will miss with her friends.
c.
the stress of traveling via plane and navigating airports.
d.
the nonrefundable deposit her friends paid for the beach house in Destin.
ANSWER:
d
53. Carolyn Bates is a junior in college studying economics. She has created a new software application that applies the four principles of economic decision making to any potential decision that a user faces. She is considering leaving school after this academic year to pursue further development of her app. Carolyn should consider all of the following costs when calculating the opportunity costs of leaving college EXCEPT the
a.
potential future job security from her college degree.
b.
90 credit hours she has already completed for her degree.
c.
potential memories from her senior year of college.
d.
skills she may gain from her final year of economics courses.
ANSWER:
b
54. Carolyn Bates is a junior in college studying economics. She has created a new software application that applies the four principles of economic decision making to any potential decision that a user faces. She is considering leaving school after this academic year to pursue further development of her app. Carolyn should ignore all of the following costs when calculating the opportunity costs of leaving college EXCEPT the
a.
time she will spend working on the app instead of studying.
b.
90 credit hours she has already completed for her degree.
c.
tuition costs she has already paid to her college.
d.
skills she may gain from her final year of economics courses.
ANSWER:
d
55. Carolyn Bates is a junior in college studying economics. She has created a new software application that applies the four principles of economic decision making to any potential decision that a user faces. She is considering leaving school after this academic year to pursue further development of her app. Carolyn should consider all of the following costs when calculating the opportunity costs of staying in college EXCEPT the
a.
time she will spend studying instead of working on the app.
b.
potential forgone profits from selling her app.