This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Costs > Opportunity Cost – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a Household? A) Cost that's already been incurred & can't be recovered. B) An organization that produces goods / services for sale. C) The way total income is divided among owners of various factors of production. D) A person / group of people that share their income. Show Answer Correct Answer: D) A person / group of people that share their income. 2. Which is an example of resource reallocation in World War II? A) A citizens conserving to give to soldiers. B) Citizens sharing with citizens. C) Soldiers sharing with soldiers. D) Citizens not sharing with soldiers. Show Answer Correct Answer: A) A citizens conserving to give to soldiers. 3. An opportunity cost can be known as a A) Trade-off. B) Trade secret. C) Tooth fairy. D) Tax. Show Answer Correct Answer: A) Trade-off. 4. The basic economic problem of all economies is essentially one of deciding how to make the best use of ..... A) Limited resources to satisfy unlimited wants. B) Unlimited resources to satisfy limited wants. C) Unlimited resources to satisfy unlimited wants. D) None of above. Show Answer Correct Answer: A) Limited resources to satisfy unlimited wants. 5. A garbage truck driver is an example of which Factor of Production? A) Labor. B) Land. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Labor. 6. Which of the following do economists NOT consider to be one of the factors of production? A) Land. B) Labor. C) Money. D) Capital. Show Answer Correct Answer: C) Money. 7. Something we would like to have but is not necessary for survival. A) Service. B) Need. C) Want. D) Good. Show Answer Correct Answer: C) Want. 8. What is an example of specialization? A) Selling the best pizza at Pizza Hut. B) Giving the best paint jobs at a gym. C) Giving the best hair cuts at a school. D) Selling toilet paper at Wendy's. Show Answer Correct Answer: A) Selling the best pizza at Pizza Hut. 9. Scarcity arises because all societies have A) Limited productive resources to satisfy unlimited wants. B) Unlimited productive resources to satisfy limited wants. C) Limited needs and unlimited wants. D) Unlimited needs and limited wants. Show Answer Correct Answer: A) Limited productive resources to satisfy unlimited wants. 10. These are the things we desire to have. A) Wants. B) Goals. C) Opportunity Costs. D) None of above. Show Answer Correct Answer: A) Wants. 11. Making a decision between 2 choices or things is A) Consequences. B) Choice. C) Decision making. D) None of above. Show Answer Correct Answer: B) Choice. 12. SSEF1d The value of the next best alternative given up is called A) Trade off. B) Opportunity Cost. C) Scarcity. D) Economics. Show Answer Correct Answer: B) Opportunity Cost. 13. Mr. Prince gave his wife $ 150 to pay an electric bill instead of buying tickets to see the New York Yankees. What is the opportunity cost? A) Tickets to game. B) $ 150. C) Mr. Prince. D) Electric bill. Show Answer Correct Answer: A) Tickets to game. 14. If a point falls in the interior of a ppc, there is a(n) A) Recession. B) Decreasing opportunity cost. C) Boom of resources. D) Economic growth. Show Answer Correct Answer: A) Recession. 15. The use of the smallest amount of resources to produce the greatest amount of output. It is the main reason why scarcity is good. A) Scarcity. B) Allocation. C) Productivity. D) Efficiency. Show Answer Correct Answer: D) Efficiency. 16. Why can an economy not produce above the PPC A) The economy does not have enough resources to produce any combination of 2 goods above the curve. B) Labour is not 100% efficient. C) In the real world economy there is wastage of productive resources. D) The opportunity cost is too high. Show Answer Correct Answer: A) The economy does not have enough resources to produce any combination of 2 goods above the curve. 17. When one good is sacrificed for another it is called a(n): A) Production Possibilities. B) Scarcity. C) Trade-off. D) Exchange. Show Answer Correct Answer: C) Trade-off. 18. A government is faced with the choice of spending on either education or healthcare.Of what is this an example? A) Conservation of resources. B) Monetary policy. C) Substitution of factors. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 19. Citizens during WWII had to find ..... ways to live without resources that were limited. A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: D) Alternative. 20. Which of the following is a free good? A) Inoculation provided without change by the state. B) Recycled paper. C) Wind coming in from the sea. D) Prizes of food items given away by a supermarket. Show Answer Correct Answer: C) Wind coming in from the sea. 21. What good does Toys R Us specialize in? A) Donuts. B) Candy. C) Pizza. D) Toys. Show Answer Correct Answer: D) Toys. 22. The place where goods and services are exchanged A) Currency. B) Barter. C) Market. D) Resource. Show Answer Correct Answer: C) Market. 23. What is the non-monetary cost of attending college? A) Money to spend on tuition. B) Less time to spend with friends. C) Getting a job. D) Saving a car. Show Answer Correct Answer: B) Less time to spend with friends. 24. Tyra Foster likes asking at least 21 questions. She had to make a decision to ask another one or not to. She chose to not ask another question. What is her opportunity cost? A) Not asking a question. B) Remaining silent. C) None of the above. D) None of above. Show Answer Correct Answer: C) None of the above. 25. Sam's boss called to offer her an extra shift tonight. Sam wanted the money, but she's got a big swim meet tomorrow and needed sleep. She told her boss to offer the shift to someone else. What is the opportunity cost? A) Money. B) Sam's boss. C) Sam. D) Swim meet. Show Answer Correct Answer: A) Money. 26. Which of these would NOT be an example of an opportunity cost of working on a homework assignment? A) Playing a game. B) Watching a movie. C) Taking a walk. D) Getting a good grade. Show Answer Correct Answer: D) Getting a good grade. 27. You buy a chair on craigslist for $ 10. You then discover that this is a special chair you could sell for $ 100, you decide to keep the chair anyway. What is the opportunity cost? A) $ 90. B) $ 10. C) $ 100. D) $ 110. Show Answer Correct Answer: C) $ 100. 28. At the store a boy is trying to decide if he wants to spend his money on a new jacket or a pair of cool boots. This is an example of- A) Specialization. B) Human resources. C) Economic choice. D) Interdependence. Show Answer Correct Answer: C) Economic choice. 29. The fact that there are limited amounts of goods and services to meet unlimited wants is called: A) Economics. B) Surplus. C) Scarcity. D) Shortage. Show Answer Correct Answer: C) Scarcity. 30. An increase in resources A) Will shift the PPC outward. B) Will not change the PPC. C) Will shift the PPC inward. D) Will cause a movement along the PPC. Show Answer Correct Answer: A) Will shift the PPC outward. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesOpportunity Cost Quiz 1Opportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity Cost Quiz 4Opportunity Cost Quiz 6Opportunity Cost Quiz 7Opportunity Cost Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books