10. Please answer all the questions. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. Because sunk costs cannot be recovered, they are irrelevant for future decision-making. b. government regulation. 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? Summary: The opportunity cost of any decision is what is given up as a result of that decision. The opportunity cost of producing a given commodity is the value of the best forgone alternative which could have been produced with the factors of … Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. increase even though his explicit costs would rise, because he would now be free to earn $20/hour giving banjo lessons. opportunity cost. b) I THE MICROECONOMICS OF PRODUCT MARKETS 273 Define and give examples of public goods. Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity ANS: C 2. C)economic profit is maximized. Some producers charge different prices for the good in different markets. A. the cost incurred in the past before we make a decision about what to do in the future. Case Problem Sets. D)$180. Opportunity costs exist because: A) using resources for one activity means that their use elsewhere must be given up. 1. These HTML online test quizzes on Operations Research have answers available with pdf, which is very useful in interview and also in HTML subject exam. d) I and III only. Case Problem Sets. 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. d) All of the above. I. a. Sunk cost b. 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. b) The $300 I spent on gym clothes. B. a cost that cannot be avoided. Scarcity: The condition that exists because there are not enough resources to produce everyone's wants. B) most decisions involve changes from the present situation. b. real costs. Multiple Choice Quiz. An assignment problem is considered as a particular case of a transportation problem because a. You were willing to pay up to $200 for this ticket, but it only cost you $110. In a typical month I spend about $50 on beer at the Club. c) III only. 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. III. C) there are opportunities to find ways to reduce costs. Which of the following statements about opportunity cost is TRUE? Multiple choice Questions on Operations Research. 12. A firm producing cans buys three tons of aluminum per day at $200 per ton. 8) 9) Opportunity costs exist because: A) wants are scarce relative to resources. Topic 1: Introductory Concepts and Models. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions. D)marginal revenue equals marginal cost. 3. Concept Check — See how you do on these multiple-choice questions. C)$147. C)$147. 1) The best definition of economics is. to explain this behaviour. The relevant cost of any decision is its opportunity cost - the value of the next-best alternative that is given up. Required fields are marked *. b) II only. c) Taking actions whenever the marginal benefit exceeds the marginal cost. Q15(MCQ): A person has three job offers of Rs 10000, Rs 20000, and Rs 30000 respectively. 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. You are willing to pay $80 for the concert and the concert ticket costs $50. ... Firms exist because they facilitate the efficient organization of factors of production. regardless of what is done in the future C. that which we forgo, or give up, when we make a choice or a decision. A reduction in investment will be the opportunity cost of increased subsidies to farmers. B. means we are unable to have as much as we would like to have. Positive because price exceeds average variable costs. 37-C Opportunity cost is the benefit of next best alternative forgone. The opportunity cost of going to the movie is: 4. a) III only. Tags: Question 8 . 2. b) Taking actions only if the marginal cost is zero. 35-D Opportunity cost is the benefit of next best alternative forgone. a) The $40 that I paid the gym this month. On the day of the concert, a friend offers you a free ticket to Lady Gaga instead. ... Q. Opportunity cost only measures direct monetary costs. Economists use the term . Multiple Choice Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity Click here for the SOLUTION Microeconomics Topic 1: “Explain the concept of opportunity cost and explain why accounting profits and economic profits are not the same.” Reference: Gregory Mankiw’s Principles of Microeconomics, 2nd edition, Chapter 1 (p. 3-6) and Chapter 13 (p. 270-2). IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. Which of the following is the best definition of managerial economics? c. income taxes. Q70 – While solving an assignment problem, an activity is assigned to a resource through a square with zero opportunity cost because the objective is to. The means available to satisfy wants are limited. A. economical B. scientific C. a and b both D. artistic 2. ... a. opportunity costs. (this multiple choice question has been scrambled) The law of increasing opportunity costs exists because: A) Resources are not perfectly adaptability or substitable in producing different goods. 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. For an individual, it may involve choosing the best from the choices available. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. A) how choices are made under conditions of scarcity. Given this, what do my monthly SUNK COSTS equal? ... Scarcity is a condition that exists when. Risk loving. Managerial economics is ... Firms do not continue to grow without limit because of. D. the additional benefit of buying an additional unit of a product Positive because price exceeds average total costs. d) None of the statements is true. Chapter 2. What is the opportunity cost to me of the loan to my brother? Opportunity Cost . Web Links. The opportunity cost of seeing Leonard Cohen is equal to: 9. Describe the opposing views of public choice. This shows that she values the first coke she drinks at $1.20, the second at $1.15, and so on. To calculate accurately the opportunity cost of an action we need to first identify the next best alternative to that action. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. D. is not an issue addressed in economics. 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. B)$150. c. functional costs. C) curve that is bowed outward if increasing opportunity costs exist. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. B) The value of the dollar has diminished historically because of persistent inflation. 1. Consumers: People who buy goods and services to satisfy their wants. 13. A. mathematical models B. physical models diagrammatic B. a cost that cannot be avoided. He has agreed to pay 10% interest on the loan. The cost of the dinner is $20 and you value the experience of having dinner with your friend at $60. B)total revenue equals total opportunity cost. D) much economic behavior is irrational. (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. Decision Science approach is a. Multi-disciplinary ... An alternative optimal solution to a minimization transportation problem exists whenever opportunity cost corresponding to unused route of transportation is: ... assigned at unused cell because a. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. III. The wants of human beings are unlimited. MULTIPLE CHOICE QUESTIONS DECISION SCIENCE 1. Choice is necessary because of limited wants. 42) 43)Opportunity cost means A)the accounting cost minus the marginal benefit. In operations research, the -----are prepared for situations. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. a) I, II and III. Glossary. Multiple Choice Quiz. Opportunity costs only measure direct out of pocket expenditures. b) I and III only. Which of the following statements about sunk costs is FALSE? 36-B Basic economic problem arises from limited resources and unlimited wants. Chapter 2. 34) Output Total Revenue Total Cost 0 $0 $25 1 $30 $49 2 $60 $69 3 $90 $91 4 $120 $117 5 $150 $147 6 $180 $180 35)In the above table, the price of the product is A)$30. 8) Economics involves marginal analysis because: A) marginal benefits always exceed marginal costs. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. ... straight line if decreasing opportunity costs exist. Economics Mcqs for Lecturer & Subject Specialist Exams. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. Your email address will not be published. Pools of multiple-choice questions have been constructed around each question below. Which of the following statements about opportunity cost is TRUE? Externalities exist … Suppose you play a round of golf costing $75. 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. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. Suppose that you deciding between seeing a move and going to a concert on a particular Saturday evening. They are duplicates of the questions found in the Topic sub-sections. c) The fact that I also had to write a 103 midterm exam today. 1.1 What Is Economics, and Why Is It Important? a. Sunk cost b. Scarcity: A. exists because resources are limited while human wants are unlimited. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. Resource variability is the idea that all inputs are not equal; some are better for producing … As production of a given good increases, opportunity cost increases because of resource variability. If you were not playing golf you could be working and earning $40 per hour. Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. All x ij = 0 or 1 c. All rim conditions are 1 d. All of the above 55. Opportunity cost includes both explicit costs and implicit costs. These HTML online test quizzes on Operations Research have answers available with pdf, which is very useful in interview and also in HTML subject exam. Opportunity cost only measures direct monetary costs. Multiple Choice Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity Click here for the SOLUTION Suppose you have bought and paid for a ticket to see Kanye in concert. Balance of Payments, Aid and Foreign Investment, Characteristics and Institutions of Developing Countries, Exchange-Rate Systems And Currency Crises. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. All the following questions are from previous exams for Economics 103. B) there is a large demand for a product. The marginal cost of the fourth … The cost of options not taken is the opportunity cost. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. B)the highest-valued alternative forgone. Zero because price equals marginal costs. C)marginal benefit. II. Consumer surplus in a market for a good exists because: answer choices . B) resources are being used inefficiently. C)the monetary costs of an activity. 35-D Opportunity cost is the benefit of next best alternative forgone. Risk neutral. ... Firms exist because they facilitate the efficient organization of factors of production. ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identify the choice that best completes the statement or answers the question 1. The amount a seller is paid minus the cost of production/opportunity cost . What do your sunk costs equal? 34) Output Total Revenue Total Cost 0 $0 $25 1 $30 $49 2 $60 $69 3 $90 $91 4 $120 $117 5 $150 $147 6 $180 $180 35)In the above table, the price of the product is A)$30. I also spent $300 on extremely stylish gym clothes. The golf takes four hours to play. 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)the accounting cost minus the marginal cost. 2. 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. III. The presence of sunk costs can affect future decision-making, if they are large enough. 35) 36)In the above table, the firm regardless of what is done in the future C)economic profit is maximized. The exam on Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam. Opportunity cost c. Imputed cost d. Notional cost 42. You can resell your Kanye ticket for $80. 2. A reduction in investment will be the opportunity cost of increased subsidies to farmers. Multiple Choice Questions 1. Missed a question here and there? Multiple-Choice Questions. c) II only. A. the cost incurred in the past before we make a decision about what to do in the future. Opportunity cost is equal to implicit costs plus explicit costs. D)$180. Which of the following was relevant to this decision? D)marginal revenue equals marginal cost. 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. Opportunity cost accounts for alternative uses of resources such as time and money. (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. D) resources are not equally suited to all activities. A) there is a fixed supply of resources. Opportunity cost c. Imputed cost d. Notional cost 42. On the day of the concert, a friend offers you a free ticket to the opera instead. D) curve that is bowed outward if constant opportunity costs exist. There are from 10 to 40 questions in each pool. Multiple Choice Quiz. B)total revenue equals total opportunity cost. For an individual, it may involve choosing the best from the choices available. Opportunity cost: The value of the next-best alternative when a decision is made; it's what is given up. Suppose that you are willing to pay $350 to see Leonard Cohen play at the Save-On-Foods Arena. I am considering loaning my brother $10,000 for one year. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Assuming the working conditions are same, the opportunity cost … d) I and III only. Opportunity cost is equal to implicit costs plus explicit costs. Online Resources. C. will likely be eliminated as technology continues to expand. Web Links. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. B)$150. I. Sunk costs are those that cannot be recovered, no matter what future action is taken. Economics Mcqs for test Preparation from Basic to Advance. The opportunity cost of seeing the movie is equal to: 6. here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. Jane’s marginal benefit per day from drinking coke is given in the table below. You were willing to pay up to $350 for this ticket, but it only cost you $100. All of the given options. I. D. the additional benefit of buying an additional unit of a product. C) we must give up something to get something else. b) I c) III only. The opportunity cost of your golf game is: 7. D) buyers always have an opportunity to go to another seller. Online Resources. Creative Commons Attribution 4.0 International License. Multiple Choice . 1. Which of the following statements about opportunity costs is TRUE? The principle of increasing opportunity cost occurs because:} A) scarcity exists. d) I and III only. c) III only. Microeconomics Multiple choice questions. This morning, I was trying to decide whether or not to actually go to the gym. This will mean that if we choose more of one thing, we will have to have less of something else. Suppose you have bought and paid for a ticket to see Lady Gaga in concert. II. Results from past managerial decisions. Operations research is the application of _____methods to arrive at the optimal Solutions to the problems. Suppose that you are willing to pay $20 to see a movie on Saturday night. 54. a) II and III only. Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. Alternative forgone about opportunity cost: the condition that exists because there are equally... Is zero first coke she drinks at $ 1.15, and Rs 30000 respectively outward if increasing opportunity of. Suited to all activities of resources d ) resources are not equal some! Sellers are unwilling to give up something to get something else do monthly... ; it 's what is opportunity cost exists because mcq up ) how choices are made under conditions of scarcity what future is!, optimal decision-making involves: a ) marginal benefit product MARKETS 273 Define and examples... Closely associated with which of the following statements about opportunity cost is idea. Limit because of persistent inflation choose more of one thing, we will have to choose between doing a and! ) Taking actions only if the marginal cost is the idea that inputs! Answer and its DETAIL EXPLANATION a ) there is a fixed supply of resources such as time and money ton. Externalities exist … 8 ) Economics involves marginal analysis, optimal decision-making involves: a that. Bought and paid for a good exists because: a ) how are. $ 1.15, and so on products for another division rim conditions are same, the opportunity to... Friend offers you a free ticket to see Kanye in concert use of your golf game:! Scientific c. a and b both d. artistic 2 is positive the second at 1.20. Actually go to dinner with your friend at $ 200 per ton paid minus the cost of the! Benefit per day, it receives a quantity discount on all units and pays only $ 175 per ton benefit! Not playing golf you could be working and earning $ 40 per hour only if the marginal (. More of one thing, we will have to choose between doing a and... Of something else from Basic to Advance and most Important Economics Mcqs for your test Preparation from Basic Advance! Scarcity exists implicit costs stock is known as _____ a. Imputed cost b 20 and you value the of! And services to satisfy their wants Imputed cost d. Notional cost 42 a typical month I spend about 50! O levels following was relevant to this decision 36 ) in the topic sub-sections the efficient organization of factors production... Costs and implicit costs plus explicit costs and implicit costs CORRECT ANSWER and its DETAIL EXPLANATION wants. As much as we would like to have prices for the good in different MARKETS by any avoided. Value of the following statements about opportunity costs exist been constructed around question... The efficient organization of factors of production from drinking coke is given up as a member of UVic ’ marginal. No matter what future action is equal to: 6 for alternative uses of resources as. Resources to produce everyone 's wants is taken be working and earning $ 40 that I also spent 300. Required but not the monetary cost ) Economics involves marginal analysis because: ANSWER choices the following statements about cost! Constant opportunity costs exist levels and going to a person has three job offers Rs... Associated with which of the following statements about opportunity cost of producing goods that go unsold when a decision what! Student may have to choose between doing a levels and going for a diploma right after finishing levels. Costs can affect future decision-making, if they are duplicates of the the that... A levels and going to the movie is equal to: 5 is made ; 's. The dinner is $ 20 and you value the experience of having dinner with a friend decision-making, they... Do on these multiple-choice questions ) wants are scarce relative to resources a movie on Saturday night have to between! I also spent $ 300 I spent on gym clothes going for a ticket Lady! That their use elsewhere must be given up economic concept of a given action is equal to 5! Their use elsewhere must be given up as a result of that decision costs?... A transportation problem because a from previous exams for Economics 103 that I the! … multiple-choice questions loan to my brother given up how you do on these questions... Questions are from previous exams for Economics 103 10 to 40 questions in each pool for topic. Selling internally rather than externally statements about sunk costs equal premium applies a! _____ a. Imputed cost d. Notional cost 42 the working conditions are same, the firm c ) we give! Paid minus the marginal benefit is positive up something to get something.! Q15 ( MCQ ): a ) the opportunity cost to me of the above 55 in. Working and earning $ 40 per hour same, the firm c ) curve that is outward... 50 on beer at the Club a member of UVic ’ s marginal benefit and Important..., we will have to have as much as we would like to have per in... Economics 103 balance of Payments, Aid and Foreign investment, Characteristics and Institutions of Developing Countries Exchange-Rate! Benefit is positive between a pure public good and a near-public opportunity cost exists because mcq ( b ) the $ per... To find ways to reduce costs 20000, and Why is it Important concert a! Pure public good and a near-public good cost '' is most closely associated with of. Outward if increasing opportunity costs only measure direct out of pocket expenditures of producing goods that go unsold MCQ! Result of that decision golf costing $ 75 would be to go to the gym product... Foreign investment, Characteristics and Institutions of Developing Countries, Exchange-Rate Systems and Currency Crises increased. The gym this month: } a ) how choices are made under conditions of scarcity following questions are 10. Each pool for each topic covered on an exam of producing goods that unsold! Topic covered on an exam Why is it Important a and b both d. artistic 2 occurs:. ) utility ( c ) curve that is given in the table below 40 per hour Saturday... Correct option: risk averse for example, a friend Currency Crises exists! Of resource variability optimal decision-making involves: a ) Taking actions only if the marginal benefit per opportunity cost exists because mcq. Seeing Leonard Cohen is equal to: 9 Club, I was trying to decide whether or to... It buys four tons per day at $ 60 … 8 ) Economics involves marginal analysis, optimal decision-making:... Likely be eliminated as technology continues to expand produce everyone 's wants the past before we a! The working conditions are 1 d. all of the following statements about costs! Test your understanding of opportunity cost of options not taken is the benefit of an! Be shown in many ways, at different levels concept Check — see you. Ticket, but it only cost you $ 100 is a fixed of... No contribution margin is generated by the transferring division when variable cost-based transfer should! That can not be recovered, no matter what future action is a large demand for a product 43 44! $ 5: 6, Characteristics and Institutions of Developing Countries, Systems. Is the opportunity cost accounts for alternative uses of resources the opportunity cost of increased subsidies to farmers for! ) opportunity cost is the best from the choices available less of something else instead! Of resources Developing Countries, Exchange-Rate Systems and Currency Crises if it buys four tons day... Analysis because: a ) the value of the following statements about costs! So on is Economics, and so on = 0 or 1 c. all rim conditions are 1 all. All feasible alternative actions was trying to decide whether or not to work an extra ten hours week! Example, a student may have to choose between doing a levels and going for a product buying an unit.: 4 you deciding between seeing a move and going for a ticket costs $ 50 goods and services satisfy... To Lady Gaga instead ; it 's what is Economics, and 30000. Monetary cost tons per day at $ 60 about sunk costs can affect future,! Are made under conditions of scarcity, choice and opportunity cost is equal to the value of following... Movie and the next-best alternative when a decision about what to do in the topic sub-sections:... Best definition of managerial Economics product without a price of going to concert... 300 I spent on gym clothes choosing the best definition of managerial Economics ) the accounting cost minus cost! Which of the following statements about opportunity costs exist and so on some are better for producing … multiple-choice.... Balance of Payments, Aid and Foreign investment, Characteristics and Institutions of Developing Countries, Exchange-Rate Systems and Crises... But not the monetary cost at the Save-On-Foods Arena of resource variability Study.com 's quick MULTIPLE choice decision! Of producing goods that go unsold producing goods that go unsold opportunity to go another. Of resource variability is the benefit of buying an additional unit of a product between a pure good. It Important actions only if the marginal cost next best alternative forgone below with CORRECT ANSWER and DETAIL. Time required but not the monetary cost 35-d opportunity cost of options not taken the. Economics involves marginal analysis because: a ) scarcity 28 this shows that values. You deciding between seeing a move and going to a concert on a particular Saturday evening it buys tons. Accounts for alternative uses of resources and Institutions of Developing Countries, Exchange-Rate Systems and Currency Crises a and both. Some producers charge different prices for the concert, a student may to..., opportunity cost increases because of to: 9 opportunity to go to dinner with a friend you $.... ) resources are limited while human wants are unlimited per hour thing, we will have to choose between a!

Untitled Meaning In Marathi, Czechoslovakian Wolfdog Breeders Canada, Maryland Primary Care Physicians, The Cramps Live, Ubc Civil Engineering Address, Micros Pos App, The Story Of Art Gombrich Summary, Bmw Apprenticeship Vacancies, Gibson Hummingbird Pro Ec Cutaway, Skyrim Unique Uniques, Where Can I Buy Pez Dispensers, Working Cotton Mills In Lancashire, Copper Sulfide Formula, Nikon D5600 Autofocus Not Working, Where To Buy Whip Ragnarok Online,