This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Costs > Opportunity Cost – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A student decides to buy a ticket for a concert instead of buying a new shirt. What is the opportunity cost of buying the ticket? A) The price of the ticket to the concert. B) The shirt. C) The concert. D) The time spent purchasing the ticket. Show Answer Correct Answer: B) The shirt. 2. In terms of the production possibility curve, a decrease in unemployment would be best shown by A) A movement along the curve. B) A movement from a point inside the curve to a point closer to the curve. C) An inward shift of the curve. D) An outward shift of the curve. Show Answer Correct Answer: B) A movement from a point inside the curve to a point closer to the curve. 3. All of the following are possible costs of your decision to go away to college except A) You will be paying a lot of money. B) You will become more educated. C) There may be a lot of social distractions. D) You will spend lots of time studying. Show Answer Correct Answer: B) You will become more educated. 4. A government decides to spend more on defence and therefore cannot spend as much on improving the country's infrastructure.What economic idea is illustrated by this decision? A) Monetary policy. B) Opportunity cost. C) Budget surplus. D) Specialisation. Show Answer Correct Answer: B) Opportunity cost. 5. To control the amount of something that people are allowed to have, especially when there is not enough is known as ..... A) Opportunity cost. B) Needs. C) Spending. D) Rationing. Show Answer Correct Answer: D) Rationing. 6. Limited Resources + Unlimited Wants = A) Efficiency. B) Scarcity. C) Opportunity Cost. D) Productivity. Show Answer Correct Answer: B) Scarcity. 7. Improved Methods is also known as A) Working more. B) On the Job Training. C) Working Less. D) Being unemployed. Show Answer Correct Answer: B) On the Job Training. 8. A decision always involves A) Money. B) At least two alternatives. C) Income. D) Good or services. Show Answer Correct Answer: B) At least two alternatives. 9. Elizabeth has a $ 25 budget to spend at the store. Which items should she buy first before she buys anything else? A) Soda, bottled water, grapes. B) Bread, candy, chips. C) Milk, ice cream, pasta. D) Eggs, oranges, soup. Show Answer Correct Answer: D) Eggs, oranges, soup. 10. What, according to the definition of opportunity cost, is sacrificed when a decision is taken? A) The least valuable alternative. B) An identical alternative. C) The next best alternative. D) Any possible alternative. Show Answer Correct Answer: C) The next best alternative. 11. A ..... is a good thing that occurs as a result of something else. A) Need. B) Opportunity cost. C) Choice. D) Benefit. Show Answer Correct Answer: D) Benefit. 12. Construction companies are building new houses on land previously used for farming.What is the opportunity cost to society of this activity? A) Less congestion in city centres. B) Some farm output. C) Improved living conditions. D) More homes for new homeowners. Show Answer Correct Answer: B) Some farm output. 13. To trade goods or services is called ..... ? A) Barter. B) Wants. C) Choice. D) Service. Show Answer Correct Answer: A) Barter. 14. A famous economics saying is, "There is no such thing as a free lunch" . What does this statement mean? A) You must always pay for lunch. B) Never accept a free lunch. C) None of these. D) Everything has a cost. Show Answer Correct Answer: D) Everything has a cost. 15. Yann bought a new bicycle for $ 350 but has never used it. The second hand value of the bicycle is $ 250. What is the opportunity cost to Yann of keeping the bicycle? A) $ 250. B) $ 0. C) $ 350. D) $ 100. Show Answer Correct Answer: A) $ 250. 16. Tools we use to make products A) Entrepreneurs. B) Natural resources. C) Human resources. D) Capital resources. Show Answer Correct Answer: D) Capital resources. 17. A firm decides to stop manufacturing ovens and to produce washing machines instead.What is the opportunity cost to the firm? A) The loss of the production of ovens. B) The additional washing machines produced. C) The cost of producing washing machines. D) The cost of producing ovens. Show Answer Correct Answer: A) The loss of the production of ovens. 18. Find 25% of 80 kg A) 10 kg. B) 8 kg. C) 20 kg. D) 40 kg. Show Answer Correct Answer: C) 20 kg. 19. Which of the following would NOT be an example of an opportunity cost for spending the day at a baseball game? A) Spending the day at a park. B) Spending the day doing homework. C) The money you spent on the ticket. D) Hanging out with your friends at the basketball game. Show Answer Correct Answer: C) The money you spent on the ticket. 20. A ..... is something you would like to have, but it is not required to live. A) Want. B) Need. C) Luxury. D) Choice. Show Answer Correct Answer: A) Want. 21. When you make a choice, you often have to give up other options ..... those options are called A) Trade offs. B) Scarce Options. C) Misused Resources. D) Missed Opportunities. Show Answer Correct Answer: A) Trade offs. 22. What name is given to the most important item you give up when you make a decision? A) Opportunity cost. B) Options. C) Trade-offs. D) Lost opportunities. Show Answer Correct Answer: A) Opportunity cost. 23. It's recommended that you spend your money on ..... last. A) Debt. B) Budget. C) Wants. D) Needs. Show Answer Correct Answer: C) Wants. 24. In economics, natural sunlight is classified as a free good. What is the reason for this? A) Sunlight is a renewable resource. B) There is no opportunity cost of using sunlight. C) Sunlight is a gift of nature. D) Unlimited amounts of sunlight can be consumed. Show Answer Correct Answer: B) There is no opportunity cost of using sunlight. 25. David wanted to go to the movie, but he chose to pay his water bill instead, the following would be an example of A) Need. B) Want. C) Factor of production. D) None of above. Show Answer Correct Answer: A) Need. 26. You win a football match ticket that worth $ 100, but need to pay 25% tax. What is the opportunity cost if you choose to stay home and watching a TV show that you need to pay $ 20 rather than going to the football match? A) $ 95. B) $ 125. C) $ 75. D) $ 100. Show Answer Correct Answer: A) $ 95. 27. Opportunity Cost is A) The negative aspects of an action. B) The alternatives you didn't choose. C) The second best alternative. D) The choice you made. Show Answer Correct Answer: C) The second best alternative. 28. The factors of production include ....., ..... and ..... A) Air, sea, land. B) Land, labor, investment. C) Labor, land, capital. D) Earth, wind, fire. Show Answer Correct Answer: C) Labor, land, capital. 29. Citizens had to limited their use of gasoline and sugar because of ..... A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: B) Rationing. 30. When you make a choice, you won't get any other option. The 2nd-best thing you have to give up is called the ..... A) Opportunity Cost. B) Scarce Options. C) Missed Opportunities. D) Misused Resources. Show Answer Correct Answer: A) Opportunity Cost. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesOpportunity Cost Quiz 1Opportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity Cost Quiz 4Opportunity Cost Quiz 5Opportunity Cost Quiz 7Opportunity Cost Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books