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FC5: Human capital, opportunity cost, cost/benefit analysis

Last updated about 6 years ago

5 questions

1

1

1

1

1

Question 1

1.

An investment in human capital leads to

lower productivity

greater productivity

lower standard of living

higher wages

higher standard of living

Question 2

2.

The next best alternative you give up when making a choice is called

trade-off

scarcity

opportunity cost

economics

Question 3

3.

If you choose to go to college full time rather than going directly to work after graduation, your opportunity cost would be

the friends you developed while at college

the tuition and books you paid for while at college

the income you could have earned while working

the social life at college

Question 4

4.

When weighing the expected benefits and costs of your actions, you are involved in what kind of decision making process?

impulsive decision making

marginal analysis decision making

spontaneous decision making

independent decision making

Question 5

5.

When making a rational decision, how are the marginal benefit(MB) and marginal cost(MC) related to each other?

MB < MC

MB > MC

MB > or = MC

MB = MC