This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Costs > Opportunity Cost – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want A) Need. B) Want. C) Trade-off. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 2. The factors of production is / are ..... needed to produce goods and services. A) Resources. B) People. C) Energy. D) Things. Show Answer Correct Answer: A) Resources. 3. ..... happened during WWII when American citizens were only allowed to have certain amounts of specified goods. A) Opportunity costs. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: B) Rationing. 4. Opportunity cost can also be called the ..... of your decision. A) Reward. B) Lost opportunity. C) Cost. D) Evaluation. Show Answer Correct Answer: C) Cost. 5. The factors of production include all of the following EXCEPT: A) Land. B) Labor. C) Capital. D) Entrepreneurs. Show Answer Correct Answer: D) Entrepreneurs. 6. These resources were limited during WWII because of ..... A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: B) Rationing. 7. Why do people trade? A) To make friends. B) To get things they already have. C) To be popular. D) To get things they need and want but do not have. Show Answer Correct Answer: D) To get things they need and want but do not have. 8. When you spend $ 100 on a new pair of shoes, what are some possible trade-offs? A) Two months membership at a gym that costs $ 50 a month. B) A new pair of jeans and shirt. C) A nice dinner with a friend. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. What types of goods were rationed during World War II? A) Clothing. B) Vehicle parts. C) Food. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. There are 18 students that want to use blue poster board for their project, but there are only 6 pieces of blue poster board available. We could state that there is a ..... for blue poster board. A) Supply. B) Demand. C) Benefit. D) Need. Show Answer Correct Answer: B) Demand. 11. What is the most basic problem of economics? A) Scarcity. B) Allocation. C) Productivity. D) Specialization. Show Answer Correct Answer: A) Scarcity. 12. You pick (1) Candy, (2) Magazine, (3) Soda. What is the opportunity cost for buying the candy? A) Both the magazine and the soda. B) The magazine. C) The soda. D) The candy. Show Answer Correct Answer: B) The magazine. 13. Which of the following reasons best describe why you NEED a new book? A) There's a movie version of the book coming out. B) Many people at school have recommended it. C) Your English teacher is requiring you to read the book. D) Your friend told you that you should read the book. Show Answer Correct Answer: C) Your English teacher is requiring you to read the book. 14. Opportunity cost is your ..... A) First choice. B) Second best alternative. C) Trade-off of a choice. D) Allocation of a good or service. Show Answer Correct Answer: B) Second best alternative. 15. The good or service that you give up when you make an economic choice is called ..... A) Service. B) Economic choice. C) Opportunity cost. D) Specialization. Show Answer Correct Answer: C) Opportunity cost. 16. Difference between wants and needs and available resources A) Economy. B) Factors of Production. C) Resources. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 17. Which one of these is NOT a cause of scarcity? A) Unlimited resources. B) Not enough materials. C) Poor Distribution of Resources. D) Rapid Increase in Demand. Show Answer Correct Answer: A) Unlimited resources. 18. A Latin phrase that means "all other things held constant." A) Ceteris paribus. B) Ceteris pluribus. C) Cretrian paribus. D) Cretplum paribas. Show Answer Correct Answer: A) Ceteris paribus. 19. Americans gave up resources in hopes for the freedom the war would provide. This is considered an ..... A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: A) Opportunity cost. 20. The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. What is the opportunity cost of producing a car in the U.S.? A) .5 cars. B) .75 cars. C) 1.3 tools. D) .5 tools. Show Answer Correct Answer: D) .5 tools. 21. In economics, the value of the next best alternative is called ..... A) Scarcity. B) Productivity. C) Opprotunity Cost. D) Supply and Demand. Show Answer Correct Answer: C) Opprotunity Cost. 22. What is the main problem in economics? A) Scarcity. B) Unemployment. C) Shortage. D) Choices. Show Answer Correct Answer: A) Scarcity. 23. For example, if you are given $ 10 and you choose to go to the Burger King and spend that $ 10 and gave up the opportunity to go to KFC. Your next choice would have been buy candy. Your Trade-off would be A) Burger King. B) The mall. C) KFC. D) None of above. Show Answer Correct Answer: C) KFC. 24. Why must a government consider the opportunity cost of spending decisions A) To get the best value for money. B) Because the money comes from taxation. C) Because a choice is made between alternative uses. D) To meet all the people's needs. Show Answer Correct Answer: C) Because a choice is made between alternative uses. 25. Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie? SSEF1d DOK A) Fixed cost. B) Residual cost. C) Opportunity cost. D) Marginal cost. Show Answer Correct Answer: C) Opportunity cost. 26. The economic problem is that A) Resources are limited and wants are limited. B) Resources are unlimited and wants are limited. C) Resources are limited and wants are unlimited. D) Resources are unlimited and wants are unlimited. Show Answer Correct Answer: C) Resources are limited and wants are unlimited. 27. The study of how people try make choices to satisfy seemingly unlimited and competing needs and wants. A) Economics. B) Scarcity. C) Paradox of Value. D) Utility. Show Answer Correct Answer: A) Economics. 28. When you make a choice, you often have to give up other options ..... those things are called the ..... A) Scarce Options. B) Missed Opportunities. C) Misused Resources. D) Opportunity Cost. Show Answer Correct Answer: D) Opportunity Cost. 29. The fact that it smells like dog food near the Purina Factory can be considered A) An external cost to the public. B) An external cost to everyone involved. C) An external cost to the factory operators. D) An external benefit to the factory operators. Show Answer Correct Answer: A) An external cost to the public. 30. Redirecting resources from one area to another is called ..... A) Opportunity costs. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: C) Reallocation. Next →Related QuizzesMicroeconomics QuizzesEconomics QuizzesOpportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity Cost Quiz 4Opportunity Cost Quiz 5Opportunity Cost Quiz 6Opportunity Cost Quiz 7Opportunity Cost Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books