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Opportunity Costs

Last updated about 1 year ago

12 questions

Note from the author:

Calculating Opportunity Costs

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Question 1

1.

True or False: Opportunity cost is the value of the next best alternative that must be given up.

True

False

Question 2

2.

True or False: Opportunity cost only applies to financial decisions.

True

False

Question 3

3.

Select all that apply: What are factors that can influence opportunity cost?

A. Time constraints

B. Personal preferences

C. Financial resources

D. Weather conditions

Question 4

4.

What is the opportunity cost of choosing to watch a movie instead of studying for a test?

A. Not watching the movie

B. Not getting a good grade on the test

C. Not enjoying the movie

D. None of the above

Question 5

5.

If you decide to work part-time during college, what is a potential opportunity cost?

A. Earning extra money

B. Spending more time on studies

C. Having more free time

D. None of the above

Question 6

6.

What is the opportunity cost of buying new clothes instead of saving money for a vacation?

A. Having new clothes to wear

B. Not going on vacation

C. Saving money for the future

D. None of the above

Question 7

7.

What is the opportunity cost of spending time playing video games instead of studying for a test?

A. Having fun playing games

B. Getting a good grade on the test

C. Not improving gaming skills

D. None of the above

Question 8

8.

Sara can either work part-time for $20 an hour or full-time for $30 an hour. If she chooses part-time, what is the opportunity cost per hour in terms of full-time work?

Question 9

9.

You can either study for your Economics exam or go to a movie with friends. The opportunity cost of going to the movie is a 'C' on your exam. What is the opportunity cost in terms of the movie?

Question 10

10.

A company can produce either 100 units of Product A or 50 units of Product B. If they choose to make Product A, what is the opportunity cost in terms of Product B?

Question 11

11.

A company can produce 100 computers or 200 mobile phones. What is the opportunity cost of producing one computer in terms of mobile phones?

Question 12

12.

An investor can either buy stocks yielding 5% or bonds yielding 3%. What is the opportunity cost of choosing bonds?