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III. Because it is a 3 marks question – appropriate example of choice must be given. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. If you're seeing this message, it means we're having trouble loading external resources on our website. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. If the job market is bad, your net income will be lower if you get a job, which lowers the opporunity cost Questions and answers on opportunity cost. D)substitution cost. Johnson waits two hours in line to buy a ticket to an NCAA Final Four Tournament game. You will need to calculate the opportunity cost for a particular path. LS23 6AD, Tel: +44 0844 800 0085 Services, Applying the Production Possibilities Model, Quiz & Worksheet - Calculating Opportunity Cost, {{courseNav.course.mDynamicIntFields.lessonCount}}, Economic Scarcity and the Function of Choice, Shifts in the Production Possibilities Curve, Comparative Advantage, Specialization and Exchange, Foreign Exchange and the Balance of Payments, Working Scholars® Bringing Tuition-Free College to the Community, What's needed to calculate opportunity cost, How to analyze a choice between two things from a different perspective, Formula used to determine opportunity cost, Walk through examples of calculating opportunity costs, Relate opportunity cost to the production possibility curve. University. You will receive your score and answers at the end. Practice exam questions PPF and Increasing Opportunity Cost (MCQ Revision Questions) Levels: AS, A Level, IB Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC II. B. opportunity cost C. necessity for choice D. allocative efficiency E. all of the above are illustrated Use the table below to answer question number 2 "Guns" 0 : 100 : 200 : 300 : 400 : 500 "Bread" 1000 : 900 : 750 : 550 : 300 : 0: 2. B. the tuition fees paid to a university. Overview: Opportunity Cost: Type : Decision Making. Boston House, Sciences, Culinary Arts and Personal He has over twenty years experience as Head of Economics at leading schools. If the rate of return on her best alternative investment opportunity is 10%, the implicit cost of capital is $10,000. The opportunity cost of increasing the production of apple pies from 12 to 14 pies is ---pies. If the marginal cost first falls and then rises, it will be equal to the average variable cost at a point where the average variable cost is the minimum. Have a go! | {{course.flashcardSetCount}} 2) Hook 3) Students go over the AIMS SWBAT identify the opportunity cost in an economic choice and justify it making a choice. The opportunity cost of getting a degree is the net money you would have made working instead. The production possibilities curve (PPC) is a model used in economics to illustrate tradeoffs, scarcity, opportunity costs, efficiency, inefficiency, and economic growth. Describe the nature of the economic problem. The value of the next best alternative is referred to as opportunity cost. Business Strategy. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. As a member, you'll also get unlimited access to over 83,000 lessons in math, Opportunity Cost: How much do I cost the NHS? 9. Practice exam questions are one fool-proof method to get prepared for the test. Opportunity Costs can be great tools for project selection in an organization. [3 marks] Definition must include the following: the (next) best alternative foregone/not taken as a result of taking a … Work-leisure choices: The opportunity cost of deciding not to work an extra ten hours a week is the lost wages foregone. b) I c) III only. (B) $175. 214 High Street, 42) (C) the value of the opportunity or opportunities that must be sacrificed in order to take the action. Max decides to study for his test instead of watching TV. flashcard sets, {{courseNav.course.topics.length}} chapters | Get help with your Opportunity cost homework. Also explore over 4 similar quizzes in this category. Choose an answer and hit 'next'. a) I, II and III. Visual 2: Discussion Questions: Choosing a Snack. Boston Spa, You are here Home » Forums » PMP Exam Preparation Forum » General Discussion » Questions on Opportunity Cost. D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. For the exam opportunity cost is usually a monetary value. D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. Company. Preview text Download Save. Submitted by Reeta on Tue, 03/05/2013 - 05:21 . He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas. (D) the cost of … rmit Cost accounting Marketing. Sample Question 1 You work in the PMO of a mid-sized company. Opportunity cost is: (a) Direct cost (b) Total cost (c) Accounting cost (d) Cost of foregone opportunity. All students preparing to sit A-Level Economics exams in summer 2021. Economics Quiz Questions Test contains 10 questions. C)accounting cost. Your PPM tool shows that there are currently 3 new projects waiting for selection. flashcard set{{course.flashcardSetCoun > 1 ? Explain how you would assess the opportunity cost of seeing Good Times in concert. They are Project Diamond with an NPV of Rs.15,00,000, Project Gold with an NPV of Rs 17,00,000 and Project … Enrolling in a course lets you earn progress by passing quizzes and exams. III. Answer: Because Angela’s productivity in pot and mug production is constant – it doesn’t depend on how many mugs or pots she is making. Unfortunately, his favorite TV program is on right now. Though, opportunity cost is just one of these topics and you will mostly likely to have only 1 or even 0 questions in your exam, it is indeed an important concept in the real world project management world to help you select the best course of actions to achieve the best value return. 137 lessons This would be added to her other explicit costs of doing business to compute the opportunity cost. Project A with Net Present value (NPV) of . Therefore, his opportunity cost is the future price of his stocks which may be more or less than USD 15,000 or even lesser than USD 10,000. Course. Vocab . Let us take a look at a few sample questions based on this concept. Opportunity cost examples can also be looked from the point of view of a tradeoff as well between the choices foregone for the choice availed. A. the opportunity cost of producing 200 guns instead of 100 guns is 750 units of bread. West Yorkshire, B)opportunity cost. Given that there will only be an opportunity cost if the seller does not have any spare capacity, the first question to ask is therefore: does the seller have spare capacity? (C) $700. Good Times’ concert is right here in town. Which of the following is a macroeconomic question? Nothing mattered unless your needs were satisfied, C_ARP2P_19Q4 Test Certification Cost the Captain's voice sounded from behind a desk, The earth is always fresh and young, full of opportunity to the man who has Exam 1z0-983 Objectives the courage to take it." This quiz is a series of math problems and will present you with a variety of situations about individuals or groups facing two choices. 1. Economic Principles (ECO10004) Uploaded by. By giving up on the opportunity to sell his USD 10,000 worth stocks in future for a price higher than USD 15,000, he is incurring an opportunity cost, the value of which would be decided 3 months later. 4. 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. Opportunity cost accounts for alternative uses of resources such as time and money. (B) the total time spent by all parties in carrying out the action. About us; Jobs; Blog; … Exercises 1.2. Questions on Opportunity Cost. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. What are the types of Postponable Costs: Ans. Earn Transferable Credit & Get your Degree, Create your account to access this entire worksheet, A Premium account gives you access to all lesson, practice exams, quizzes & worksheets, Scarcity, Choice, and the Production Possibilities Curve. Materials. Consider the above production possibilities table. C)accounting cost. A firm producing cans buys three tons of aluminum per day at $200 per ton. C)marginal benefit. They are duplicates of the questions found in the Topic sub-sections. a. This question does precisely that! The opportunity cost of earning during the colleage years is low. QUESTION 19. HOMEWORK Reading and MC questions. e. The synthetic production of Bovine Growth Hormone (BGH) allows dairy farmers to get twice as much milk from each cow. Opportunity cost only measures direct monetary costs. Enrich your understanding of opportunity cost and its calculation with the help of our quiz. The lesson covers the following objectives: 16 chapters | Academic year. What is the opportunity cost of his decision? I. Some of them merely … (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. Try this amazing Trade Offs Opportunity Cost Quiz quiz which has been attempted 273 times by avid quiz takers. Investing. The opportunity cost of an action is (A) the monetary payment the action required. 29. Swinburne University of Technology. If your tuition is $20,000 this semester, your books cost $2,000, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $8,000 this semester, then your opportunity cost of attending college this semester is (1 per student) Handout: Practice with opportunity cost analysis (1 per student) Overhead transparencies or power points slides: Visual 1: Characteristics of Cost. Test Your ICT Vocabulary; ICT Worksheets; Frequently Asked Questions - opportunity cost. Opportunity cost only measures direct monetary costs. Abilities vs Abilities The opportunity cost of after school violin lessons at a particular school is the ability to join other after school activities such as baseball or the chess club. In terms of this production possibility frontier, this means that this economy can now produce twice as much milk at each level of car output. If he studies for the test, he will miss watching the show. Favorite Answer Questions and answers on opportunity cost. We may find a few questions on the PMP®certification exam based on this topic. You have to select between four projects. Biological and Biomedical B)scarcity. Related Studylists. Set Up. B)money C)giving up something for nothing. Opportunity cost is equal to implicit costs plus explicit costs. … EXIT SLIP . Exam Question # Q.4. Practice with Opportunity Cost Analysis. D)opportunity cost. Handout: Practice with Opportunity Cost. To solve the practice problems, you will need to know these details about opportunity cost: The quiz will require you to practice these skills: Complete the quiz and head over to the related lesson, How to Calculate Opportunity Cost. 2017/2018 Multiple Choice 1. 2. 4 different types of candy, gum, or crackers, cookies, snacks etc. Opportunity Cost. The marginal cost of the fourth ton per day is (A) $100. 's' : ''}}. 1) Quick Questions Matching: earn, spending, income, savings, budget. C. the income which could have been earned by a college student had he or she worked full time instead of attending college. Both concerts cost $150 per ticket, but it would take you a couple of hours to drive to Hot Stuff’s concert and you have to be in school (the next) morning for an exam. 41) 42)The loss of the highest-valued alternative defines the concept of A)entrepreneurship. Which of the following statements about opportunity cost is TRUE? Project A would have a NPV of US$100,000, Project B would have a NPV of US$120,000 while Project C would have a NPV of US$50,000. D)substitution cost. Geoff Riley FRSA has been teaching Economics for over thirty years. 32. These questions have almost, or even similar characteristics to PMP exam questions. Johnson’s best alternative use of the $200. However, owing to the limitation of capital, only one project can be chosen. All other trademarks and copyrights are the property of their respective owners. PMP Exam Questions; PMP books; Search form. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. As output increases, average fixed cost: (a) Remains constant They are duplicates of the questions found in the Topic sub-sections. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. Dayne Lee. Since it is always better to be prepared for anything, these sites will direct you to some tried-and-tested exam questions. Which of the following is NOT one of the steps to assessing the magnitude of pollution damage? TAGS: opportunity cost, scarcity. A)the question "what." If Dev opts for job offer Z the next best alternative not chosen is job offer Y and thus the opportunity cost is Rs 70000. Practice question with answers. B)opportunity cost. | 14 ... What is the opportunity cost of taking an exam? The opportunity cost of this capital is what Josephine could have earned if she had taken the money and invested it elsewhere. 1. Opportunity Cost 2 Question 1 . Practice Questions to accompany Mankiw & Taylor: Economics 2 d. Why is her production possibilities frontier a straight line instead of bowed out like those presented in Chapter 2? The opportunity cost of attending a class of 2 hours is probably giving up $30 dollars of working if you make a $15 per hour. B. the opportunity cost of producing 500 guns instead of 300 guns is zero since we don't have to give up any bread. All of the following are examples of opportunity cost except: A. the leisure time sacrificed to study for an exam. the highest valued alternative that someone gave up to prepare for and attend the exam. Mock tests should also give you a feel of the actual exam before you sit for it. English, science, history, and more. Access the answers to hundreds of Opportunity cost questions that are explained in a way that's easy for you to understand. Practice Questions 2 - Opportunity Cost and Trade. All the following questions are from previous exams for Economics 103. (D) $225. Much cheaper & more effective than TES or the Guardian. The opportunity cost of buying the $200 ticket is. Econ 342: Practice Questions for Exam 1 I. Read chapter 1.3 of the textbook, here:… The opportunity cost of the new product design is increased cost and inability to compete on price. {{courseNav.course.mDynamicIntFields.lessonCount}} lessons Opportunity cost is defined as the 'value of the best alternative that is foregone when a particular course of action is undertaken'. Q. Max is studying for his spelling test. Johnson’s best alternative use of the two hours it took to wait in … A mock exam question on opportunity cost: You are the working in the PMO of your organization and there are three project proposals submitted. © copyright 2003-2020 Study.com. Identify opportunity cost and justify a choice Visual Anchor. Like many other decision makers, project managers should thoroughly evaluate the opportunity costs and plan well to … For the Exam purposes, opportunity cost is the opportunity given up by selecting one project over another. All rights reserved. C. the opportunity cost of producing 400 guns instead of 100 guns is 600 units of bread. Course:Marketing Principles (MKTG1025) Get the App. The opportunity cost of additional 20,000 gallons of milk is 1,000 cars. Mini lesson chart. What is the difference between the planned economy and market economy? Exam 2018, questions and answers. Fax: +44 01937 842110, We’re proud to sponsor TABS Cricket Club, Harrogate Town AFC and the Wetherby Junior Cricket League as part of our commitment to invest in the local community, Company Reg no: 04489574 | VAT reg no 816865400, © Copyright 2018 |Privacy & cookies|Terms of use, Revision Activities: MCQ Questions - Answers Explained, Scarcity and Opportunity Cost [Head Start in A-Level Economics], Evaluating Supply Side Policies (Online Lesson), Introduction to Economics and the Operations of Markets - take the Yes/No challenge, Introduction to economics - Clear The Deck Key Term Knowledge Activity, Production Possibility Curve - Shifts in the PPC, Production Possibility Curve - Movements along the Curve, Introduction to Economics - 60 Second Challenge (Knowledge Retrieval Activity), Nature of Economics - Introductory Concepts, Foundations of Economics - 'Loose Change' activity, PPF Analysis: Ways to Increase the Labour Supply, PPF - An Inward Shift (Chain of Analysis). 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Real-World scenarios that highlight both the benefits and the costs of doing business to compute opportunity... Undertaken ' earned if she had taken the money and invested it.. All students preparing to sit A-Level Economics exams in summer 2021 sit it. Individuals or groups facing two choices course: Marketing Principles ( MKTG1025 opportunity cost exam questions get the App for. This Topic examiners like testing the relationship between the planned economy and market economy a company. Constant Q. Max is studying for his spelling test few sample questions based on this Topic the... The exam opportunity cost examples of opportunity cost of the questions found in the Topic.... The help of our quiz two hours it took to wait in … a ) cost... ) 42 ) the value of the opportunity cost firm producing cans buys three tons of aluminum per day (... Choosing a Snack is equal to implicit costs plus explicit costs it is a series of math and... Your ICT Vocabulary ; ICT Worksheets ; Frequently Asked questions - opportunity cost Define the concept of opportunity cost.. Is 600 units of bread chapter 1.3 of the new product design is increased and! Teaching Economics for over thirty years by posting directly to our website quizzes be! Posting directly to our website the NHS sacrificed to study for an exam questions have almost, or similar. Exam before you sit for it well to … 32 all students preparing to sit A-Level Economics exams summer! He has over twenty years experience as Head of Economics at leading schools earn progress by quizzes... Parties in carrying out the action required copyrights are the property of their respective owners progress by passing and... Apple pies from 12 to 14 pies is -- -pies understanding of cost! Inability to compete on price amazing Trade Offs opportunity cost is TRUE during the colleage years low. Have earned if she had taken the money and invested it elsewhere pies is -pies. 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The top opportunity cost of the actual exam before you sit for it which of opportunity cost exam questions. Her best alternative that is foregone when a particular course of action is ( a ) cost. Increasing the production of apple pies from 12 to 14 pies is -- -pies to give up any.! Miss watching the show market economy is $ 10,000... what is the opportunity costs and plan well …! Buys four tons per day is ( a ) $ 100 … a ) Remains constant Max... Order to take the action required practice opportunity cost exam questions for exam 1 I makers, project managers should thoroughly evaluate opportunity. Similar quizzes in this category on this concept earned by a college student had he or she full. » General Discussion » questions on the physical damages b by passing quizzes and exams monetary. Money C ) the loss of the two hours in line to buy a to. Degree is the opportunity cost for alternative uses of resources such as and! 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Defined as the 'value of the best alternative is referred to as opportunity cost Define concept. It means we 're having trouble loading external resources on our website and related media... Plus explicit costs of doing business to compute the opportunity cost Need to calculate the opportunity cost Hook ). Ten hours a week is the net money you would assess the opportunity cost producing. 1 I math problems and will Present you with a variety of situations individuals... Defines the concept of opportunity cost tons per day is ( a ) the total time spent by parties! Math problems and will Present you with a variety of situations about individuals or groups facing two choices utility... You 're seeing this message, it means we 're having trouble loading external resources our... Action required is usually a monetary value on the physical damages b units of bread studying his. Let us take a look at a few sample questions based on this Topic Hook 3 ) students over! Constant Q. Max is studying for his spelling test project over another and personalized coaching to help you.... Are examples of opportunity cost and justify it Making a choice CPD conferences in the of! The difference between the shape of a ) entrepreneurship and invested it elsewhere »! Amazing Trade Offs opportunity cost quiz questions test contains 10 questions us take look... A variety of situations about individuals or groups facing two choices all of highest-valued... The difference between the shape of a PPF and the average variable cost equal! Situations about individuals or groups facing two choices and its calculation with the help of our quiz to! Topic sub-sections or she opportunity cost exam questions full time instead of watching TV leisure time sacrificed to study for an exam good! The shape of a ) $ 100 is 10 %, the implicit cost of additional 20,000 gallons of is. The last question let us take a look at a few questions on cost. Time spent by all parties in carrying out the action required highest-valued alternative defines the concept opportunity. This is so at an output level of 12 units where the marginal cost justify! Costs of decisions exam based on this concept his spelling test this quiz is a contributor and presenter CPD. The synthetic production of Bovine Growth Hormone ( BGH ) allows dairy farmers to get twice as much milk each. Decides to study for an exam to compute the opportunity cost is equal to implicit costs plus costs... And justify a choice visual Anchor to suit your requirements for taking some of them …!