... when there is a tie between zero opportunity cost cells; if two diagonal elements are zeros. Quiz on the PPC, Opportunity Cost, and the Gains from Trade. here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. b) 0.01 to 10%. (a) Sunk costs are ignored, (b) Opportunity costs are excluded, (c) Incremental cash flows are considered, (d) Relevant cash flows are considered. The opportunity cost of using forest resources to build houses is the enjoyment people get from having pristine forests. B)three units of soda. Sort by: Top Voted. Your score is neither recorded nor transmitted to your instructor. Have a go! The opportunity cost is the cost of the movie and the enjoyment of seeing it. Share Get link; Facebook; Twitter; Pinterest; Email; Other Apps; Popular posts from this blog Factors of Production and their Rewards. Latest Economics MCQs. b) Marginal cost. Economics Mcqs for Lecturer & Subject Specialist Exams. c) III only. And the technical term for what I've just described is the opportunity cost of going after 1 more rabbit is giving up 40 berries. Learn opportunity cost trivia questions to learn MBA for online business management degree, MBA test prep 69 for distance education courses with supply and demand test and MCQs.College and universitiy courses MCQs, , islamic banking, demand, basic rules of musharika, promotion, opportunity cost test prep for fastest online MBA program. b) I It is a: A. Which of the following statements about opportunity cost is TRUE? Power Systems, Inc., manufactures jet engines for the United States armed forces on a cost … II. This shows that she values the first coke she drinks at $1.20, the second at $1.15, and so on. You were willing to pay up to $200 for this ticket, but it only cost you $110. Use the table to answer the question below. The production possibility frontier (PPF) for computers and textbooks is shown here. (C) land, labor, and capital 7. Balance of Payments, Aid and Foreign Investment, Characteristics and Institutions of Developing Countries, Exchange-Rate Systems And Currency Crises. Power Systems, Inc., manufactures jet engines for the United States armed forces on a cost … Required fields are marked *. Q9. a) opportunity cost. c) 0.01 to 15%. C D E 7. Central Superior Services (CSS) MCQs, Group A MCQs, Economics MCQs, Money and Value of Money MCQs, the interest rates , the discount rates , the level of aggregate output , the inflation rates Which of the following statements about opportunity costs is TRUE? This question does precisely that! Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. As output increases, average fixed cost: (a) Remains constant (b) Starts falling (c) Start rising (d) None. What is the opportunity cost of making a component part in a factory given no alternative use of the capacity? You are willing to pay $80 for the concert and the concert ticket costs $50. Suppose you have bought and paid for a ticket to see Kanye in concert. As a member of UVic’s University Club, I pay $30 per month in membership fees. Referring to Figure 1.4, the opportunity cost of producing the third unit of pizza is A)one unit of soda. d) All of the above . d) 0.01 to 20% . 3. Learn opportunity cost trivia questions to learn MBA for online business management degree, MBA test prep 69 for distance education courses with supply and demand test and MCQs.College and universitiy courses MCQs, , islamic banking, demand, basic rules of musharika, promotion, opportunity cost test prep for fastest online MBA program. (a) Is unavoidable cost, (b) Is a cash flow, (c) Reduces Tax liability, (d) Involves an outflow. C) 2 skating rinks Correct. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. Opportunity cost refers to-(a) money expenses incurred on purchasing or hiring factor, services (b) the next best alternative (c) involving cash payment (d) all the above. Mutually beneficial terms of trade should fall between the two opportunity costs. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. To calculate accurately the opportunity cost of an action we need to first identify the next best alternative to that action. 09/02/2021 • Uncategorized • Uncategorized Your email address will not be published. As wise people believe “Perfect Practice … Which one of the following items is relatively unimportant in decision making? The company has deprived the shareholders of this earnings by retaining a part of profit with it. D)the same as the opportunity cost of … Therefore, China has a comparative advantage in producing trucks while Malaysia has a comparative advantage in producing coffee. Suppose you play a round of golf costing $75. 2. So 1 more rabbit means that I have a cost. a. Sunk cost b. Multiple-choice questions Try the multiple choice questions below to test your knowledge of this chapter. These combinations can also be shown graphically, the result being a production possibility frontier. 58. Directions This quiz contains 15 multiple choice questions. d) All of the above. C)the monetary costs of an activity. Suppose that you are willing to pay $20 to see a movie on Saturday night. 10. Opportunity cost c. Imputed cost d. Notional cost 42. The opportunity cost is the slope of the PPC (=2/1 = 2) the number of skating rinks that will be forgone to build one swimming pool. The money she would have earned if she had been in work for the two years. Which of the following is the best definition of managerial economics? a) II and III only. View answer 59. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Opportunity cost is a direct implication of scarcity. QUESTION: 11 If an economy was producing 10 billion tonnes of steel and 3 … Objective of work study is to improve _____ a) Cycle time. Consider the PPF diagram below. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. 2. I. The central role of markets is to determine the (A) quality of goods (B) quantity of goods (C) level of income (D) price of goods. In case of an oc curve, the risk of rejecting a good quality lot may vary between _____ a) 0.01 to 5%. Select the correct answer by clicking on the appropriate button. I am considering loaning my brother $10,000 for one year. From the blog. ? Economics Mcqs for test Preparation from Basic to Advance. Creative Commons Attribution 4.0 International License. d) I and III only. B. Work-leisure choices: The opportunity cost of deciding not to work an extra ten hours a … The opportunity cost includes both explicit and implicit costs. So I have to give up, on average, 40 berries. The cost of the dinner is $20 and you value the experience of having dinner with your friend at $60. PPCs for increasing, decreasing and constant opportunity cost. When you choose rocky road, the opportunity cost is the enjoyment of the strawberry. Quiz on the PPC, Opportunity Cost, and the Gains from Trade. regardless of what is done in the future (A) opportunity cost 10. Topic 2 Multiple Choice Questions All the following questions are from previous exams for Economics 103. This morning, I was trying to decide whether or not to actually go to the gym. B illustrates constant opportunity costs and illustrates decreasing opportunity costs. The quantity of money demanded for transaction purposes depends on the level of income. I also spent $300 on extremely stylish gym clothes. Implicit costs are also known an-(a) Opportunity costs (b) Imputed costs (c) Notional costs (d) All the above. 4. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. Anyone who wishes to enter into transactions in a monetary economy has to hold money as a medium of exchange. D. The cost of the course fees at the college. Opportunity cost is equal to implicit costs plus explicit costs. Comparative advantage and the gains from trade . rows+columns- 1; rows-columns. (adsbygoogle = window.adsbygoogle || []).push({}); PakMcqs.com is the Pakistani Top Mcqs website, where you can find Mcqs of all Subjects, You can also Submit Mcqs of your recent test and Take online Mcqs Quiz test. b) productivity. c) Production. Given this, what do my monthly SUNK COSTS equal? rows or columns; rows and columns. The opportunity cost of building one swimming pool is two skating rinks. In fact, it can produce all the following combinations of computers and books. This question does precisely that! (A) opportunity cost 10. 1. Choosing one option means the other option has to be forgone. Production Possibilities Curve as a model of a country's economy. illustrates decreasing opportunity costs and illustrates constant opportunity costs. The decision-making process requires : Which of the following costs is relevant in decision-making? Select the correct answer by clicking on the appropriate button. regardless of what is done in the future C. that which we forgo, or give up, when we make a choice or a decision. So let me write this down. Cost unit for a cable industry is a) Per tone b) Per cost c) Per meter d) Per cubic foot 17. B. a cost that cannot be avoided. 8. The opportunity cost of seeing Leonard Cohen is equal to: 9. I. Opportunity cost is_________________? You were willing to pay up to $350 for this ticket, but it only cost you $100. A. the cost incurred in the past before we make a decision about what to do in the future. If an owned building is used for a business project, the likely rent of the building receivable if let out is an example of _____ a. Sunk cost b. Imputed cost c. Opportunity cost d. Notional cost 43. You are willing to pay $20 to see the movie and the movie ticket costs $5. He has agreed to pay 10% interest on the loan. Opportunity Cost This concept of scarcity leads to the idea of opportunity cost. Opportunity cost can be assessed directly with cost effectiveness or cost utility studies. 1. One disadvantage of using North-West Corner rule to find initial solution to the transportation problem is that a. II. At the ice cream parlor, you have to choose between rocky road and strawberry. b) The $300 I spent on gym clothes. C)six units of soda. 2. C)marginal benefit. a) The $40 that I paid the gym this month. Economics Mcqs for Lecturer & Subject Specialist Exams. Objective of work study is to improve _____ a) Cycle time. III. Managerial economics is. A. the cost incurred in the past before we make a decision about what to do in the future. The opportunity cost of going to the movie is: 4. Multiple Choice Questions This activity contains 7 questions. a) I, II and III. Next lesson. Simply put, the opportunity cost is what you must forgo in order to get something. If you were not playing golf you could be working and earning $40 per hour. The extra money she will earn as a result of her improved qualifications . Related MCQs? The value of the next best alternative is referred to as opportunity cost. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. (C) Gini 9. opportunity cost corresponding to unused route of transportation is: a. Related MCQs? Multiple Choice Quiz. ANSWERS: ECONOMICS MCQ 6. In case of an oc curve, the risk of rejecting a good quality lot may vary between _____ a) 0.01 to 5%. Microeconomics looks at how individuals make choices such as how to maximize utility and Macroeconomics looks at how the world makes choices under conditions of scarcity. They are duplicates of the questions found in the Topic sub-sections. B. a cost that cannot be avoided. Q9. Correct answer: (C) when there is a tie between zero opportunity cost cells. d) All of the above . This is the currently selected item. 1.1 What Is Economics, and Why Is It Important? 62. MCQ Opportunity Cost Past Paper. Opportunity cost is: A. Exercises 2.2. Directions This quiz contains 15 multiple choice questions. The opportunity cost of making a component part in a factory with no excess capacity is the ? a. Sunk cost b. c) III only. Opportunity cost includes both explicit and implicit costs. Your email address will not be published. 207. Once you have completed the test, click on 'Submit Answers for Grading' to get your results. All the following questions are from previous exams for Economics 103. Labels: MCQ Opportunity Cost Past Paper. III. For an individual, it may involve choosing the best from the choices available. If I don’t loan my brother the $10,000, it will stay in my bank account for the year, where it will earn 2% interest. B)the highest-valued alternative forgone. Export steel b. a) I, II and III. 189. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. Average fixed cost can be obtained through: (a) AFC=TFC/TS (b)AFC=EC/TU (c)AFC=TC/PC (d) AFC=TFC/TU. This activity contains 10 questions. here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. Opportunity cost is often used by investors to compare investments, but the concept can be applied to many different scenarios. What do your sunk costs equal? d) 0.01 to 20% . MCQ Opportunity Cost Past Paper. By practicing these MCQs of Introduction To Economics Mcqs ( Economics ) MCQs – Latest Competitive Medical MCQs , an individual for exams performs better than before.This post comprising of mechanical engineering objective questions and answers related to “Introduction To Economics Mcqs ( Economics ) Mcqs “. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. The presence of sunk costs can affect future decision-making, if they are large enough. Economics Mcqs for test Preparation from Basic to Advance. When two or more interventions are compared cost utility effectiveness analysis makes the opportunity cost of the alternative uses of resources explicit. Which costs may normally be ignored when determining whether to close a factory for a short period? Cost effectiveness ratios, that is the £/outcome of different interventions, enable opportunity costs of each intervention to be compared. Lesson summary: Opportunity cost and the PPC. D)opportunity cost. C. that which we forgo, or give up, when we make a choice or a decision. A ticket costs $10, and the next-best alternative use of your time would be to go to dinner with a friend. Optimizing the use of farm resources on an individual farm level. Opportunity Cost. I. Sunk costs are those that cannot be recovered, no matter what future action is taken. c) Production. Opportunity cost c. Imputed cost d. Notional cost 42. On the day of the concert, a friend offers you a free ticket to Lady Gaga instead. Opportunity cost is the potential loss owed to a missed opportunity, often because somebody chooses A over B, the possible benefit from B is foregone in favor of A. b. real costs. 10. Suppose that you deciding between seeing a move and going to a concert on a particular Saturday evening. Positive & greater than zero b. 12. illustrates increasing opportunity costs and illustrates constant opportunity costs. January 15, 2017 The opportunity cost of your golf game is: 7. Start studying Lecture 1 - Opportunity cost Multiple choice questions. The opportunity cost of a good is_____? (B) capital 8. a) Period cost b) Opportunity cost c) Sunk cost d) Marginal cost 16. b. a field that applies economic theory and the tools of decision science. This article consists of MCQ related to the topic “Concepts of Cost”. In microeconomy, the opportunity cost is also known as alternative cost and is also used in calculating cost benefits or analysing a project … Opportunity cost is often used by investors to compare investments, but the concept can be applied to many different scenarios. View answer. Opportunity costs only measure direct out of pocket expenditures. Which of the following was relevant to this decision? 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. 3. A ticket costs $15, and the next-best alternative use of your time would be to go to a concert which costs $80 and you value at $100. This involves the cost incurred for transportation, installation, and acquisition. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. CIE has six parts to its 0455 Syllabus This is 31 MCQ and answers for part 1 from a selection of CIE past papers including Winter 2018: "The basic economic problem The first section of the syllabus introduces the fundamental ideas and concepts that underpin the study of economics including the basic economic problem, factors of production, opportunity cost and production possibility curves." b) Taking actions only if the marginal cost is zero. Opportunity cost is: (a) Direct cost (b) Total cost (c) Accounting cost (d) Cost of foregone opportunity. Which of the following cost classification categories is almost identical to a relevant cost? The opportunity cost of seeing the movie is equal to: 5. 13. C. The increase in job opportunities she will have as a result of her extra. A ticket costs $10, and the … You can resell your Kanye ticket for $80. 10. Marginal opportunity cost is an economic term that analyzes the effect of producing additional units of a product on the costs of a business, as well as the opportunities the companies give up to produce more of a product. Which of the following is not true for capital budgeting? b) 10 fish. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. Your score is neither recorded nor transmitted to your instructor. Because sunk costs cannot be recovered, they are irrelevant for future decision-making. (A) opportunity cost (B) purchasing power parity (C) disposable income (D) consumer price index. I. The opportunity cost of seeing the movie is equal to: 6. a. a distinct field of economic theory. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. The opportunity cost of a good is_____? A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. What is the opportunity cost to me of the loan to my brother? The cost of going to school includes the millions of dollars they could earn as a professional athletes. c) 0.01 to 15%. c) The fact that I also had to write a 103 midterm exam today. opportunity costs fall as production of one good rises. b) productivity. If your friend chooses to quit work for a whole year to go back to school, for example, the opportunity cost of this decision is the year’s worth of lost wages. The central role of markets is to determine the (A) quality of goods (B) quantity of goods (C) level of income (D) price of goods. A. III. Positive with at least one equal to zero c. Negative with at least one equal to zero d. None of the above 45. a) opportunity cost. 206. c) Overhead cost. They are duplicates of the questions found in the Topic sub-sections. Opportunity cost accounts for alternative uses of resources such as time and money. The golf takes four hours to play. b) 0.01 to 10%. D)the accounting cost minus the marginal cost. Share Get link; Facebook; Twitter; Pinterest; Email; Other Apps; Popular posts from this blog Factors of Production and their Rewards. Another way to say this is: it is the value of the next best opportunity. If your friend chooses to quit work for a whole year to go back to school, for example, the opportunity cost of this decision is the year’s worth of lost wages. d) All of the above were relevant. 11. illustrates increasing opportunity costs and illustrates decreasing opportunity costs. Mythica, which is a hypothetical economy, produces only two goods – textbooks and computers. ANSWERS: ECONOMICS MCQ 6. c) Taking actions whenever the marginal benefit exceeds the marginal cost. China's opportunity cost of producing 1 ton of coffee is 5 trucks, and Malaysia's opportunity cost of producing 1 ton of coffee is 3 trucks. (B) capital 8. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. A. the time lost ... Economics Mcqs. What is the opportunity cost of making a component part in a factory given no alternative use of the capacity? (C) Gini 9. Topic 1: Introductory Concepts and Models. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. 42) 43)Opportunity cost means A)the accounting cost minus the marginal benefit. (A) opportunity cost (B) purchasing power parity (C) disposable income (D) consumer price index. 205. The opportunity cost of holding money is determined by ?? b) I and III only. Cost of supplementary enterprise : B. opportunity costs increase as production of one good rises. c) Overhead cost. The cost concept is a traditional method concerning the asset is paid on … Opportunity Cost Trivia MCQs Online PDF Download 69. Multiple-choice questions ... An opportunity cost is the cost of : Which of the following costs is not relevant when considering the closure of a department within a factory? Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. Suppose you have bought and paid for a ticket to see Lady Gaga in concert. Which of the following statements about sunk costs is FALSE? Opportunity cost only measures direct monetary costs. In a typical month I spend about $50 on beer at the Club. On the day of the concert, a friend offers you a free ticket to the opera instead. By Ahmed Xahir. PPF and Increasing Opportunity Cost (MCQ Revision Questions) Levels: AS, A Level, IB; Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC; Print page. II. a) 5 coconuts. Every month I also have the option of attending a meeting of the whiskey club (open only to Club members), at a cost per meeting of $15, payable at the beginning of each meeting. The … Cost concept demands all assets to be recorded in the books of accounts at the price at which they were bought. D. the additional benefit of buying an additional unit of a product. The opportunity cost of holding money balances is the interest that could have been earned if the money had been used to purchase interest-bearing assets instead. Agricultural Economics And Farm Management Agriculture MCQs CSS Paper Preparation. If the price of coke is $1.00, the optimal number of cokes that Jane should drink is: Principles of Microeconomics by University of Victoria is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. d) I and III only. The opportunity cost of 1 more rabbit-- … Opportunity cost is the value of something when a particular course of action is chosen. Tickets cost $100, and the next-best alternative use of your time would be to work in paid employment earning $50 over the evening. Assuming that it is impossible to resell the Lady Gaga ticket, what is the minimum value you would have to place on a night at the opera, in order for you to choose the opera over Lady Gaga? Suppose that you are willing to pay $50 to see a movie on Saturday night. In January, in an attempt to commit to getting fit, I signed a year-long, binding contract at a local gym, agreeing to pay $40 per month in membership fees. Cost of next best alternative foregone: C. Cost of cultivation: D. Cost of production: View Answer Workspace Report Discuss in Forum. Free Online MCQ Questions of Class -11 Microeconomics Chapter 8 – Concepts of Cost with Answers. Practice for BBA or MBA exams using these MCQ. qualifications. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions. Practice: Opportunity cost and the PPC. The tradeoff we face between the use of our scarce resources (or even time) can be modeled in a simple economic graph known as the Production Possibilities Curve (the PPC) . Suppose that you are willing to pay $350 to see Leonard Cohen play at the Save-On-Foods Arena. What is the opportunity cost for improving her qualifications for the next two years? Q8. Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The opportunity cost of making a component part in a factory with no excess capacity is the ? Multiple choice Questions on Operations Research. Opportunity Cost Trivia MCQs Online PDF Download 69. 1. Multiple Choice Questions Bank www.icmai.in DIRECTORATE OF STUDIES. Solutions: Case Study - The Housing Market, Topic 4 Part 2: Applications of Supply and Demand, Solutions: Case Study - Automation in Fast Food, Introduction to Environmental Protection and Negative Externalities, Solutions: Case Study - The Liberal Gas Tax, Introduction to Cost and Industry Structure, 7.4 The Structure of Costs in the Long Run. Suppose that you are willing to pay $20 to see a movie on Saturday night. 1. Given the PPF illustrated, what is the opportunity cost of moving from B to A? If an owned building is used for a business project, the likely rent of the building receivable if let out is an example of _____ a. Sunk cost b. Imputed cost c. Opportunity cost d. Notional cost 43. What is an alternative term for expected value? b) II only. The opportunity cost of producing an additional kilogram of cigars would be equal at A, B, C and D. If the production possibility curve for a two-good economy is a straight line, then. a) III only. opportunity cost exists because mcq.