This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Costs > Opportunity Cost – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one of these items is a need and why? A) DVD's:to entertain you when you get bored. B) A pool:to keep you cool and so you can relax. C) A million dollars:so you can be rich and possibly famous. D) A doctor:to provide medical help when needed. Show Answer Correct Answer: D) A doctor:to provide medical help when needed. 2. All of the following are ways to pay someone EXCEPT- A) Read. B) Taxes. C) Money. D) Trade. Show Answer Correct Answer: A) Read. 3. The goods used in the production process such as factories, machinery and equipment A) Land. B) Labor. C) Resources. D) Capital. Show Answer Correct Answer: D) Capital. 4. A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is A) 50 whips. B) 30 saddles. C) 60 saddles. D) 20 whips. Show Answer Correct Answer: A) 50 whips. 5. A natural disaster (flood, drought, tsunami) would cause what change in the PPC A) A shift of the PPC inward. B) No change. C) A shift along the curve. D) A shift of the PPC outward. Show Answer Correct Answer: A) A shift of the PPC inward. 6. Which of the following best refers to the additional cost a person or firm incur to produce one more unit? A) Marginal Cost. B) Marginal Benefit. C) Consumer Benefit. D) Intersection. Show Answer Correct Answer: A) Marginal Cost. 7. The value of the next best alternative given up is called A) Opportunity Cost. B) Trade off. C) Economics. D) Scarcity. Show Answer Correct Answer: A) Opportunity Cost. 8. What is the production possibilities curve? A) A graph that shows how much an economy can produce between 2 goods. B) How much money something is. C) The opportunity one has to give up in order to gain something else. D) Land, labor, capital, entrepreneurs. Show Answer Correct Answer: A) A graph that shows how much an economy can produce between 2 goods. 9. Besides scarcity, economics is based on A) Human behavior. B) Mathematical theories. C) Social structures. D) Morals. Show Answer Correct Answer: A) Human behavior. 10. Elena had a free period instead of hanging out and talking with her friends she decided to finish her homework from the night before. What is the opportunity cost? A) Sleeping. B) Hanging with friends. C) Elena. D) Finishing homework. Show Answer Correct Answer: B) Hanging with friends. 11. A famous saying is, "There's no such think as a free lunch." What does this statement mean? A) Everything has a cost. B) Never accept a free lunch. C) None of these options. D) You should always pay for lunch. Show Answer Correct Answer: A) Everything has a cost. 12. ..... are things that people make or use to satisfy their needs and wants. A) Goods. B) Producers. C) Services. D) Consumers. Show Answer Correct Answer: A) Goods. 13. There are ..... in the world which means there are only so many video games, bikes and so on at one moment. A) Producers. B) Consumers. C) Limited resources. D) None of above. Show Answer Correct Answer: C) Limited resources. 14. The Candy Cane Company focuses on making only one product. This is called- A) Region production. B) Independence. C) Specialization. D) Trade. Show Answer Correct Answer: C) Specialization. 15. In economics a decision is free if: A) There is no money involved. B) There are no products involved. C) There is no exchange with another person. D) A decision is never free. There is usually an alternative which results in an opportunity cost. Not free. Show Answer Correct Answer: D) A decision is never free. There is usually an alternative which results in an opportunity cost. Not free. 16. The CHOICE of or decision among alternatives or possibilities is called- A) Consumer. B) Opportunity cost. C) Producer. D) Economic choice. Show Answer Correct Answer: D) Economic choice. 17. The study of how people try to satisfy what appears to be seemingly unlimited and competing wants using scarce resources. A) Economics. B) Goods. C) Services. D) Producers. Show Answer Correct Answer: A) Economics. 18. Which of the following factors would cause a shift inward of the PPC A) A World War. B) Unemployment. C) Increase in the Population. D) Improved Methods. Show Answer Correct Answer: A) A World War. 19. Because of scarcity, people are forced to make ..... about how to use resources. A) Desires. B) Opportunities. C) Houses. D) Choices. Show Answer Correct Answer: D) Choices. 20. When a resource becomes scarce, what do you think happens to its cost? A) The cost stays the same. B) The cost doubles. C) The cost increases. D) The cost goes down. Show Answer Correct Answer: C) The cost increases. 21. You can purchase one of the three:candy bar, soda, or magazine. You rank your choices as 1. candy bar, 2. magazine, 3. soda. What is your opportunity cost for buying the candy bar? A) Soda. B) Your cash. C) Magazine and soda. D) Magazine. Show Answer Correct Answer: D) Magazine. 22. ..... alternatives that must be given up when one is chosen rather than another A) Need. B) Trade-off. C) Opportunity cost. D) Want. Show Answer Correct Answer: B) Trade-off. 23. Which is the best definition for opportunity cost? A) Giving up one item for another. B) Buying and using two items. C) Using butter and margarine. D) Having multiple items at the same time. Show Answer Correct Answer: A) Giving up one item for another. 24. What is scarce in the following scenario:You have to go to work but if you work a lot of hours you are going to be very tired A) Money. B) Tiredness. C) Work. D) Time. Show Answer Correct Answer: D) Time. 25. What is a non-monetary (not spending/dealing with money) opportunity cost of attending college? A) Getting a job. B) Less time to spend with friends. C) Money spent on tuition. D) Saving for a car. Show Answer Correct Answer: B) Less time to spend with friends. 26. Which of these terms is the BEST synonym for the word "entrepreneur" ? A) "student". B) "employee". C) "business owner". D) "home owner". Show Answer Correct Answer: C) "business owner". 27. Apple can make 1, 000 iPhones or 600 iPads in their factory each day. What is the opportunity cost of making each iPhone? A) 3/5 iPad. B) 3/5 iPhone. C) 5/3 iPads. D) 5/3 iPhones. Show Answer Correct Answer: A) 3/5 iPad. 28. The opportunity cost is the value of the ..... that had to be given up f the alternative that was chosen. A) All the items. B) The next best alternative. C) The least important alternative. D) Everything except the item that was chosen. Show Answer Correct Answer: B) The next best alternative. 29. Which statement describes the typical relationship between a country's investment in human capital and its GDP? A) Investing in human capital decreases a country's GDP. B) Investing in human capital increases a country's GDP. C) Investing in human capital has no effect a country's GDP. D) None of above. Show Answer Correct Answer: B) Investing in human capital increases a country's GDP. 30. What is trade-off? A) Your choice. B) How much money you pay. C) The willingness to give something away. D) What you give up to make a choice. Show Answer Correct Answer: D) What you give up to make a choice. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesOpportunity Cost Quiz 1Opportunity 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