This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Costs > Opportunity Cost – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would not shift the PPC outward A) Increase in Population. B) Change in consumer preferences. C) Increase in technology. D) Improved methods. Show Answer Correct Answer: B) Change in consumer preferences. 2. Opportunity Cost is best defined as A) The amount of debt you take on by making a decision. B) The price you pay to purchase something. C) The value of the next best alternative that is given up due to the choice you made. D) The benefit you gain by making a decision. Show Answer Correct Answer: C) The value of the next best alternative that is given up due to the choice you made. 3. If you pay $ 5, 000 a year in tuition and give up $ 20, 000 year of income to attend college, then the yearly opportunity cost of college is ..... A) At least $ 25, 000 of foregone income and tuition. B) $ 15, 000. C) $ 20, 000 of foregone income. D) $ 5, 000. Show Answer Correct Answer: B) $ 15, 000. 4. A government decides to spend more on defence and cannot spend money on a new airport. Which concepts can be applied to the above statement? A) Trade surplus; budget deficit. B) Factor of production; private monopoly. C) Public sector; opportunity cost. D) A budget surplus; external cost. Show Answer Correct Answer: C) Public sector; opportunity cost. 5. Which of these is NOT an example of something you need to stay alive? A) Shelter. B) Food. C) Cell phone. D) Water. Show Answer Correct Answer: C) Cell phone. 6. Exchanging one good for another thought to be better A) Trade off. B) E. Law of unintended consequences. C) Normative economics. D) Free markets. Show Answer Correct Answer: A) Trade off. 7. When you make a choice, all the options that you have are called ..... A) Options. B) Trade-offs. C) Lost opportunities. D) Opportunity cost. Show Answer Correct Answer: B) Trade-offs. 8. In economics, when discussing the factors of production, the term land refers to A) Farmland. B) Real estate. C) Capital goods. D) All natural resources. Show Answer Correct Answer: D) All natural resources. 9. What is Opportunity Cost? A) The cost of the item selected. B) The cost of exploring business opportunities. C) The best alternative forgone. D) The labor used in producing the product. Show Answer Correct Answer: C) The best alternative forgone. 10. The opportunity cost of a good is A) Its price in dollars and cents. B) The alternative goods forgone. C) The price of alternative goods foregone. D) None of the other options. Show Answer Correct Answer: B) The alternative goods forgone. 11. ..... IS KNOWN AS THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES A) Entrepreneurs. B) Capital. C) Labor. D) Land. Show Answer Correct Answer: D) Land. 12. The effect of a decision is A) Consequences. B) Choice. C) Decision making. D) None of above. Show Answer Correct Answer: A) Consequences. 13. A government is faced with the choice of raising taxation or cutting public spending.Of what is this an example? A) Conservation of resources. B) Substitution of factors. C) Monetary policy. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 14. How much of something that is available is ..... A) Ration. B) Demand. C) Money. D) Supply. Show Answer Correct Answer: D) Supply. 15. What could be the opportunity cost of a nuclear power station? A) The current value of the power station. B) The cost of building the power station. C) The running costs of the power station. D) A coal-fired power station. Show Answer Correct Answer: D) A coal-fired power station. 16. When there is not enough to go around, that is called ..... A) Scarcity. B) Resources. C) Opportunity costs. D) Economic choice. Show Answer Correct Answer: A) Scarcity. 17. A person makes sandwiches at home for five hours each day. She makes 20 sandwiches per hour, and she sells each sandwich for $ 2 each.What is the opportunity cost if she takes a holiday on a working day? A) $ 2. B) $ 40. C) 20 sandwiches. D) 100 sandwiches. Show Answer Correct Answer: D) 100 sandwiches. 18. In recent years more golf courses, which use large quantities of water, have opened in China. What is the opportunity cost of this? A) Cost of water. B) Loss of farmland. C) Sales of golf equipment. D) Wages of golf course staff. Show Answer Correct Answer: B) Loss of farmland. 19. What name is given to the value of the next best alternative that you give up when you make a decision? A) Trade-offs. B) Opportunity cost. C) Options. D) Lost opportunities. Show Answer Correct Answer: B) Opportunity cost. 20. Find the new value when $ 20 is increased by 10% A) $ 22. B) $ 30. C) $ 21. D) $ 40. Show Answer Correct Answer: A) $ 22. 21. Macroeconomics is involved with the A) Economy in agregate. B) Free market. C) Individual allocations of scarce resources. D) Consumer and supplier. Show Answer Correct Answer: A) Economy in agregate. 22. This Economics term refers to the things you use to create goods and services. A) Materials. B) Resources. C) Scarcities. D) Wants. Show Answer Correct Answer: B) Resources. 23. Julia had $ 5 to spend. She wanted a toy and video game, but she only had enough money to buy one. She decided to buy the video game and put the toy back. What was her opportunity cost? A) Video game. B) Store. C) Money. D) Toy. Show Answer Correct Answer: D) Toy. 24. Who determines your opportunity cost? A) Your teachers. B) You. C) Your friends. D) Your parents. Show Answer Correct Answer: B) You. 25. Considering all the questions above, it all comes down to ..... These are decisions we all must make due to scarcity. A) Scarcity. B) Choice. C) Incentive. D) Trade offs. Show Answer Correct Answer: B) Choice. 26. Which of the following does Economics primarily study? A) How scarcity can be eliminated. B) How firms manipulate prices. C) How government influences resource allocation decisions. D) The problem of scarce resources relative to human wants. Show Answer Correct Answer: D) The problem of scarce resources relative to human wants. 27. Which is not one of the 3 factors causing a shift along the PCC A) Resource Driven Change. B) Producer Driven Change. C) Consumer Driven Change. D) Government Driven Change. Show Answer Correct Answer: A) Resource Driven Change. 28. Making important choices is A) Consequences. B) Choice. C) Decision making. D) None of above. Show Answer Correct Answer: C) Decision making. 29. Why did World War II require such a large amount of resources? A) The war was fought in both the Pacific and Europe. B) The weather was nice in both areas. C) Drought caused farmers to struggle. D) The war lasted over 10 years. Show Answer Correct Answer: A) The war was fought in both the Pacific and Europe. 30. When society does not have enough resources to produce all the things people would like to have. A) Want. B) Scarcity. C) Paradox of Value. D) Economic Growth. Show Answer Correct Answer: B) Scarcity. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesOpportunity Cost Quiz 1Opportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity Cost Quiz 5Opportunity Cost Quiz 6Opportunity Cost Quiz 7Opportunity Cost Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books