(C) the value of the opportunity or opportunities that must be sacrificed in order to take the action. This question does precisely that! 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. All the following questions are from previous exams for Economics 103. C)accounting cost. 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. Project A with Net Present value (NPV) of . You will receive your score and answers at the end. Visual 2: Discussion Questions: Choosing a Snack. 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. Let’s explain the same with the help of an example: Costa Rica a developing nation holds a National debt of $3000 billion and requires paying an interest bill on the national debt that amounts to$340 billion annually. (B) the total time spent by all parties in carrying out the action. 1. Biological and Biomedical He has over twenty years experience as Head of Economics at leading schools. 137 lessons Sciences, Culinary Arts and Personal 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." D)opportunity cost. Much cheaper & more effective than TES or the Guardian. Sample Question 1 You work in the PMO of a mid-sized company. Practice Questions 2 - Opportunity Cost and Trade. Multiple Choice 1. SWBAT identify the opportunity cost in an economic choice and justify it making a choice. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. Which of the following is a macroeconomic question? Swinburne University of Technology. Opportunity cost accounts for alternative uses of resources such as time and money. About us; Jobs; Blog; … West Yorkshire, Since it is always better to be prepared for anything, these sites will direct you to some tried-and-tested exam questions. I. Favorite Answer Questions and answers on opportunity cost. (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. Submitted by Reeta on Tue, 03/05/2013 - 05:21 . Consider the above production possibilities table. University. Opportunity cost only measures direct monetary costs. ... What is the opportunity cost of taking an exam? The lesson covers the following objectives: 16 chapters | Opportunity cost is equal to implicit costs plus explicit costs. Econ 342: Practice Questions for Exam 1 I. What is the difference between the planned economy and market economy? A. the opportunity cost of producing 200 guns instead of 100 guns is 750 units of bread. Johnson’s best alternative use of the $200. 2) Hook 3) Students go over the AIMS However, owing to the limitation of capital, only one project can be chosen. 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? Unfortunately, his favorite TV program is on right now. Read chapter 1.3 of the textbook, here:… 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). Johnson’s best alternative use of the two hours it took to wait in … The Economics Balloon Debate - a starter activity for an introductory Economics class, Supply side economics - how to shift the PPF, Economic Foundations quiz - use this with new Economics students, The Opportunity Cost of a pair of Apple AirPods, NHS Treatment Price Tags - An Exercise for Students, Opportunity Cost - Some Numerical Examples as a Worksheet, A* Exam Technique: Evaluating impact of a higher minimum wage, A* Exam Technique: Evaluating government borrowing to promote development, Development economics - new essays for practice, Development Economics Essay Plan: Savings and Growth, EU Customs Union Membership (Revision Essay Plan), The (Synoptic) Edge in Economics: Macro Calculation Questions, The (Synoptic) Edge in Economics: Micro Calculation Questions, The (Synoptic) Edge in Economics Revision: Test 2 - Macro, The (Synoptic) Edge in Economics Revision: Test 1 - Micro, African Free Trade Agreement (Chain of Analysis), Edexcel A-Level Economics Study Companion for Theme 1, AQA A-Level Economics Study Companion - Microeconomics, Advertise your teaching jobs with tutor2u. Country A up to 1/2 ton then it is Country B, Writing one report and forgoing 2 computer programs, Writing one report and forgoing 3 computer programs, Writing one report and forgoing 4 computer programs, Writing one report and forgoing 5 computer programs. a. The opportunity cost of this capital is what Josephine could have earned if she had taken the money and invested it elsewhere. Exam December 2017, questions and answers Exam, questions Lecture 1 Creating and capturing customer value Ethic Essay - Grade: B+ Principles of Marketing Textbook Marketing Principles Notes. Handout: Practice with Opportunity Cost. Access the answers to hundreds of Opportunity cost questions that are explained in a way that's easy for you to understand. © copyright 2003-2020 Study.com. Investing. B)scarcity. LS23 6AD, Tel: +44 0844 800 0085 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. 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 B)money C)giving up something for nothing. (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. Placing a monetary value on the physical damages b. English, science, history, and more. All of the following are examples of opportunity cost except: A. the leisure time sacrificed to study for an exam. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. Good Times’ concert is right here in town. 214 High Street, Like many other decision makers, project managers should thoroughly evaluate the opportunity costs and plan well to … B)opportunity cost. Dayne Lee. Academic year. Let us take a look at a few sample questions based on this concept. B. the tuition fees paid to a university. rmit Cost accounting Marketing. A)the question "what." Geoff Riley FRSA has been teaching Economics for over thirty years. 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. Solution for The opportunity cost of writing 1 exam paper for Gary and Evelyn is: (Need help? All the following questions are from previous exams for Economics 103. This would be added to her other explicit costs of doing business to compute the opportunity cost. | {{course.flashcardSetCount}} Also explore over 4 similar quizzes in this category. Materials. Have a go! 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. C. the opportunity cost of producing 400 guns instead of 100 guns is 600 units of bread. If the rate of return on her best alternative investment opportunity is 10%, the implicit cost of capital is $10,000. As output increases, average fixed cost: (a) Remains constant The value of the next best alternative is referred to as opportunity cost. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. All students preparing to sit A-Level Economics exams in summer 2021. For the Exam purposes, opportunity cost is the opportunity given up by selecting one project over another. (D) the cost of … Opportunity cost only measures direct monetary costs. Company. The opportunity cost of buying the $200 ticket is. Preview text Download Save. TAGS: opportunity cost, scarcity. 4 different types of candy, gum, or crackers, cookies, snacks etc. Practice question with answers. You have to select between four projects. HOMEWORK Reading and MC questions. 's' : ''}}. For the exam opportunity cost is usually a monetary value. 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. (C) $700. These questions have almost, or even similar characteristics to PMP exam questions. 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? Boston House, C)accounting cost. Business Strategy. Search . 32. Exam 2018, questions and answers. Describe the nature of the economic problem. All other trademarks and copyrights are the property of their respective owners. 1. Boston Spa, Answers to Economics Quiz Questions are available at the end of the last question. Economics Quiz Questions Test contains 10 questions. D)substitution cost. Mini lesson chart. They are Project Diamond with an NPV of Rs.15,00,000, Project Gold with an NPV of Rs 17,00,000 and Project … 2017/2018 a) I, II and III. III. {{courseNav.course.mDynamicIntFields.lessonCount}} lessons 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. 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. Practice exam questions PPF and Increasing Opportunity Cost (MCQ Revision Questions) Levels: AS, A Level, IB Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC PMP Exam Questions; PMP books; Search form. (D) $225. You are here Home » Forums » PMP Exam Preparation Forum » General Discussion » Questions on Opportunity Cost. Explain how you would assess the opportunity cost of seeing Good Times in concert. Mock tests should also give you a feel of the actual exam before you sit for it. B)opportunity cost. There is no calculation required. The marginal cost of the fourth ton per day is (A) $100. Your PPM tool shows that there are currently 3 new projects waiting for selection. Opportunity Cost 2 Question 1 . Set Up. 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. Which of the following is NOT one of the steps to assessing the magnitude of pollution damage? 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. 1) Quick Questions Matching: earn, spending, income, savings, budget. What are the types of Postponable Costs: Ans. Exercises 1.2. This is so at an output level of 12 units where the marginal cost and the average variable cost are equal to Rs.33. b) I c) III only. Opportunity cost is: (a) Direct cost (b) Total cost (c) Accounting cost (d) Cost of foregone opportunity. 3 Question 2 (using above diagram) Question 3 (using above diagram) 4 Question 4 Question 5 The diagram refers to production possibility frontiers for a country that produces capital goods and consumer goods. 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. Max decides to study for his test instead of watching TV. The opportunity cost of additional 20,000 gallons of milk is 1,000 cars. Economic Principles (ECO10004) Uploaded by. A firm producing cans buys three tons of aluminum per day at $200 per ton. Opportunity cost is defined as the 'value of the best alternative that is foregone when a particular course of action is undertaken'. flashcard sets, {{courseNav.course.topics.length}} chapters | 29. Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. [3 marks] Definition must include the following: the (next) best alternative foregone/not taken as a result of taking a … Related Studylists. e. The synthetic production of Bovine Growth Hormone (BGH) allows dairy farmers to get twice as much milk from each cow. If you're seeing this message, it means we're having trouble loading external resources on our website. As a member, you'll also get unlimited access to over 83,000 lessons in math, Enrolling in a course lets you earn progress by passing quizzes and exams. … 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. 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. Vocab . The opportunity cost of getting a degree is the net money you would have made working instead. Try this amazing Trade Offs Opportunity Cost Quiz quiz which has been attempted 273 times by avid quiz takers. Opportunity Cost. QUESTION 19. If he studies for the test, he will miss watching the show. They are duplicates of the questions found in the Topic sub-sections. FAQs - opportunity cost Define the concept of opportunity cost. the highest valued alternative that someone gave up to prepare for and attend the exam. | 14 Choose an answer and hit 'next'. This quiz is a series of math problems and will present you with a variety of situations about individuals or groups facing two choices. Course:Marketing Principles (MKTG1025) Get the App. The opportunity cost of earning during the colleage years is low. (B) $175. Q. Max is studying for his spelling test. ... II. What is the opportunity cost of his decision? 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. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas. Get help with your Opportunity cost homework. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. Course. A mock exam question on opportunity cost: You are the working in the PMO of your organization and there are three project proposals submitted. C)marginal benefit. 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. 42) Opportunity Cost: How much do I cost the NHS? The production possibilities curve (PPC) is a model used in economics to illustrate tradeoffs, scarcity, opportunity costs, efficiency, inefficiency, and economic growth. EXIT SLIP . They are duplicates of the questions found in the Topic sub-sections. Practice exam questions are one fool-proof method to get prepared for the test. The opportunity cost of the new product design is increased cost and inability to compete on price. Identify opportunity cost and justify a choice Visual Anchor. 41) 42)The loss of the highest-valued alternative defines the concept of A)entrepreneurship. III. We may find a few questions on the PMP®certification exam based on this topic. The opportunity cost of an action is (A) the monetary payment the action required. 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 rights reserved. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. Johnson waits two hours in line to buy a ticket to an NCAA Final Four Tournament game. Overview: Opportunity Cost: Type : Decision Making. Practice with Opportunity Cost Analysis. 9. Enrich your understanding of opportunity cost and its calculation with the help of our quiz. 2. Exam Question # Q.4. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. Because it is a 3 marks question – appropriate example of choice must be given. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Which of the following statements about opportunity cost is TRUE? 4. 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. flashcard set{{course.flashcardSetCoun > 1 ? Work-leisure choices: The opportunity cost of deciding not to work an extra ten hours a week is the lost wages foregone. 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)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. II. Some of them merely … Opportunity Costs can be great tools for project selection in an organization. The opportunity cost of increasing the production of apple pies from 12 to 14 pies is ---pies. C. the income which could have been earned by a college student had he or she worked full time instead of attending college. Questions on Opportunity Cost. You will need to calculate the opportunity cost for a particular path. D)substitution cost. 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.
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