Lesson summary: Opportunity cost and the PPC. 1. Econ Lowdown Opportunity Cost Answers is one of the most important concepts in economics and is the basis of all economic decision making. D. raises the opportunity cost of money and leads to . A rational decision maker does which of the following? PDF Practice Questions and Answers ... - Pepperdine University 4.The opportunity cost of moving from f to c is… 3.The opportunity cost of moving from d to b is… 7 Bikes. For example, the opportunity cost of you being here is the salary you could be making if you remained in the workforce. Production Possibilities Curve as a model of a country's economy. In both, the opportunity cost of 1 computer is 1/5 of a car. PDF The Economic Problem: Scarcity and Choice Check the below NCERT MCQ Questions for Class 11 Economics Chapter 1 Introduction to Micro Economics with Answers Pdf free download. The concept of 'Strategic window' was introduced by ___. The last option is the most attractive, so Cliff should be the first who is assigned to do the posters. A growth of resources in an economy is shown in PP by. Starting from the original production point, the opportunity cost of producing one more bushel of wheat must be higher than 1.7 bushels of corn. Answer each question with a complete sentence on a separate piece of paper. PDF Production Possiblities Curve Answers - EconEdLink Base your answer only on the information above and on comparative-advantage considerations. 5. Finally, only indirect costs are considered opportunity costs. A Market Economy answers these questions by allowing the buyers and the producers . Answer: (c) Rightward Shift. Mike - wash dishes . . The cost incurred in the past before we make a decision about what to do in the future. The opportunity cost of tax revenues spent on healthcare is the lost opportunity to spend the money on education. c. b. For example, given a set of scarce resources, in order to produce additional "butter," a society has to give up the opportunity to produce some "guns." In the case of Becci, each poster costs 1200:2 = 600 entries. d. Opportunity cost and the PPC (practice) - Khan Academy Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. $1.25. The opportunity cost of an action is (A) the monetary payment the action required. More specifically, it is the value of the next best alternative. opportunity cost—choosing to do one thing prevents us from having the opportunity to do another. Samacheer Kalvi 11th Economics Solutions Chapter 4 Cost ... 2. This suggests answer A. Production Possibilities Curve Answers Directions: Use the information in FIGURE 1 PPC to answer the following questions about the Alpha economy. The opportunity cost of building a new high school is a. Question 31. Assume the following schedule for producing TVs Quantity of TVs Marginal Benefit (MB) (Dollars earned from a sale) Marginal Costs (MC) (Production costs) Profit Using Accounting Costs Total Revenue Profit Using Opportunity Costs $700.000 Total Revenue $700,000 QUESTION 3 technicians Owner's Salary Depreciation Allowances Nail technicians Refer to the attached pdf and answer the question that follows A A Happy Nails pdf Owner's Time Cost of using building and equipment (opportunity cost) What is . time and effort an owner puts into maintaining a company, rather than expanding it III. The opportunity cost of a yard of cloth for William is 3 pounds of food and the opportunity cost of one yard of cloth for Calvin is 1/2 pound of food. The person with the lower opportunity cost should perform the chore. Sunk Costs - outlays of resources or effort from past periods. This is the currently selected item. Expenses that are paid with cash or equivalent b. Therefore, every choice we make has a value. Important Questions Class 11 Economics Part B Unit ... - BYJUS Principles of Corporate Finance Questions and Answers In this document you will find some sample questions about the topics included in the final exam. Fill in the answer blanks, or underline the correct answer in parentheses. Quiz & Worksheet - Calculating Opportunity Cost | Study.com Maximum efficiency. Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action (foregone profit). Teacher Login | Student Login Econ lowdown opportunity cost answers. PPCs for increasing, decreasing and constant opportunity cost. According to economic growth, production possibility curve will show (a) a downward shift (b) an inward shift (c . What is another name for opportunity cost in economics? 1.1.1.4 A decrease in the rate of interest: A. lowers the opportunity cost of money and leads to an increase in the quantity of money demanded. Figure 1 shows the production possibilities curve for Alpha, which makes two products: weapons of mass destruction and food. With the same amount of resources, Country A can produce . c. Why does the additional production of 100 bats in number 2 . A new public works project requires . (a) Economic problem (b) Marginal Cost (c) Total Cost (d) Economic Cost. Therefore, neither has a comparative advantage in either good. Takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions b. The next best thing that is not chosen is called a person's opportunity cost. 5. The answer to this question is obviously yes. You will receive your score and answers at the end. Practice: Opportunity cost and the PPC. Explicit costs a. Refer to the table below. According to the theory of competitive advantage, specialization and free trade will benefit all trading parties, even those that may be absolutely more efficient producers. C. the income which could have been earned by a college student had he or she worked full time instead of attending college. In short, an opportunity cost is the cost of the missed opportunity. . The opportunity cost of moving from a to b is… This one-pager of guided notes is PERFECT for teaching the concepts of scarcity, choice and opportunity cost quickly and efficiently. In building the hospital, the city has . A rational decision maker does which of the following? View Answer. A. Michael Porter B. Peter Drucker C. Hamel D. Abell. The definition of opportunity cost is the value of any alternative you must give up when you make a choice. 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). Assume Tony's T-shirts makes shirts for local soccer, baseball, basketball, and other sports teams. (B) the total time spent by all parties in carrying out the action. B. raises the opportunity cost of money and leads to an increase in the quantity of money demanded. Opportunity Costs I. The opportunity cost of the decision to invest in stock is the value of the interest. NOTE: THAT CURVE "BB" IS THE CURRENT FRONTIER FOR THIS ECONOMY. Choose the one alternative that best completes the statement or answers the question. d. The productivity of labor differs across countries and industries. The implication is that such graduates should definitely be able to answer 'simple, albeit contrived, opportunity cost questions'. > Opportunity Cost - The Economic Lowdown Podcast Series, Episode 1 Econ lowdown opportunity cost answers. Answers are provided. All of the following are examples of opportunity cost except: A. the leisure time sacrificed to study for an exam. Answer each question with a complete sentence on a . You are advised to spend the 10-minute period reading all the questions, andtouse page 3 sketch graphs, make notes, plan your answers. Chapter 3 - Demand and Supply - Sample Questions Answers are at the end fo this file MULTIPLE CHOICE. ANSWERS PRACTICE CLASSWORK, DAY #4 Directions: Each of the questions or incomplete statements below is followed by four (4) suggested answers or completions. (A) its explicit costs are least. based on the concept of opportunity cost: • Opportunity cost is that which we give up or forgo, when we make a decision or a choice. Direct Taxes: Is the tax the government collects directly from the people. Strategic Management Multiple Choice Questions and Answers. Opportunity cost. So the lost income through opting for the extra leisure hour is 4 pounds, the opportunity cost. Opportunity cost c. Scarcity d. Trade off e. Comparative advantage 4. Opportunity cost is. Answer the following questions: a. The answer, according to Mr. Efthimiatos, stems in part from how a buyer's reservation price case is linked to her opportunity cost of time. A relevant purchase order costs. The PPF can be used to calculate the opportunity cost of various production decisions. Question 4. Questions and Answers on Managerial Economics. have to give up, that is, the opportunity cost? Suppose massive new sources of oil and coal are found within the economy and there are major technological innovations in both sectors of the economy. Business Economics Multiple Choice Questions and Answers PDF. If Athletic Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional 100 bats? 1 car = 15 days = 1.25 planes B)opportunity cost. Boston has lower opportunity costs in producing white socks (1 < 2) and Chicago has lower opportunity costs in producing red socks (0.5 < 1). B. the tuition fees paid to a university. That which we forgo, or give up, when we make a choice or a decision. 1. The cost of studying economics equals the forgone benefit of watching TV. D)substitution cost. If Athletic Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional 100 bats? a. On average, Tony sells 1,000 shirts each . This assignment is about the different prospective of managerial economics. Scarcity, Opportunity Costs, and Basic Economic Questions: The Production Possibility Model: The Market: Demand and Supply: Market Equilibrium and Applications: Elasticity: Consumer Choice: The Firm and Production: Short-Run Production and Costs: Long-Run Production and Costs: Market Structure: Perfect Competition: Market Structure: Monopoly 16. The pay increase if the extra leisure hour is taken is 260-240 pounds = 20 pounds per week. 6. . Which curve in the diagram would Ch 5: Techniques of project valuation: NPV, IRR, etc Ch 5 8 Payback Consider the . A)the question "what." B)money C)giving up something for nothing. These quiz objective questions are helpful for competitive exams. These costs should be ignored. Answer: (d) All of these. Continuing with the information in question 2, if Sasha applies the cost-benefit principle (the action should be taken if the extra benefits One of the opportunity costs of going to college is not being able to take a job. (a) Sunk costs are ignored, (b)Opportunity costs are excluded, (c)Incremental cash flows are considered, (d) Relevant cash flows are considered. Best shape of PPC reflects (a) diminishing opportunity cost (b) constant opportunity cost (c) increasing opportunity cost (d) None of these Answer: (a) diminishing opportunity cost. Giving the chance or opportunity of having the orange, would be the opportunity cost. Question 5. Use the PPF below to answer the following questions. a. 3. 1.2 Give It Up for Opportunity Cost! Andy and Hannah and the time it takes each of them to clean an office and clean a jail cell: 15 min . View Answer. It is the value of the next best alternative foregone. The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want. C irrelevant inventory carrying costs. One of the opportunity costs of going to college is not being able to take a job. 33) With appropriate examples, define the difference between direct and indirect taxes. B) a comparison of real GDP in one period relative to another. Question 31. Comparative advantage. (C) the cost of real resources used is least. Angela is a college student. Study Questions (with Answers) Page 1 of 7 (9) Study Questions (with Answers) . B relevant inventory carrying costs. If you ask Adam to make posters, the opportunity cost of each poster is 400 entries. D) a ratio of real GDP to nominal GDP. Practice Questions and Answers from Lesson I -3: Trade 4 because we know that opportunity costs are increasing. How to Calculate Opportunity Cost - Quiz & Worksheet. Scarcity, Opportunity Costs, and Basic Economic Questions: The Production Possibility Model: The Market: Demand and Supply: Market Equilibrium and Applications: Elasticity: Consumer Choice: The Firm and Production: Short-Run Production and Costs: Long-Run Production and Costs: Market Structure: Perfect Competition: Market Structure: Monopoly Opportunity Cost Questions and Answers - Discover the eNotes.com community of teachers, mentors and students just like you that can answer any question you might have on Opportunity Cost Select one that is best in each case. Lesson Abstract: (C) the value of the opportunity or opportunities that must be sacrificed in order to take the action.