This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Costs > Opportunity Cost – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Generally, each successive unit of a good consumed will cause marginal utility to ..... A) Increase at an increasing rate. B) Decrease (or "diminish" ). C) Increase at a decreasing rate. D) Who knows? Life's a gamble!. Show Answer Correct Answer: B) Decrease (or "diminish" ). 2. When "wants are greater than the resources available to satisfy them, " it is called ..... A) Scarcity. B) Needs. C) Opportunity Cost. D) None of these answers. Show Answer Correct Answer: A) Scarcity. 3. A government spends $ 100 m on employing extra teachers instead of extra nurses.What will be the opportunity cost of this? A) The cost of training extra teachers. B) The reduction in unemployment among teachers. C) The extra nurses. D) $ 100 m. Show Answer Correct Answer: C) The extra nurses. 4. Tangible (can touch it) economic product that is useful. Used to satisfy wants and needs. A) Good. B) Service. C) Need. D) Want. Show Answer Correct Answer: A) Good. 5. Goods or services that you would like to have, but aren't needed for survival are called A) Capital. B) Needs. C) Resources. D) Wants. Show Answer Correct Answer: D) Wants. 6. Which of the following is the best definition of the word "marginal?" A) Econometric. B) Abstract. C) Complicated. D) Additional. Show Answer Correct Answer: D) Additional. 7. Kaylee decides to subscribe to Hulu instead of Netflix. Netflix is her: A) Production Possibility. B) Barter. C) Opportunity Cost. D) Choice. Show Answer Correct Answer: C) Opportunity Cost. 8. What is Sunk Cost? A) The way total income is divided among owners of various factors of production. B) A person / group of people that share their income. C) An organization that produces goods / services for sale. D) Cost that's already been incurred & can't be recovered. Show Answer Correct Answer: D) Cost that's already been incurred & can't be recovered. 9. The production possibilities curve (PPC) is a graph that shows the various combinations of output that an economy A) Should produce. B) Demands. C) Can produce. D) None of above. Show Answer Correct Answer: C) Can produce. 10. Which of the following best describes a WANT for school supplies? A) New pencils. B) New notebooks. C) New markers. D) None of above. Show Answer Correct Answer: C) New markers. 11. If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what? A) They are being over efficient. B) They are not efficient. C) It is impossible. D) None of the above. Show Answer Correct Answer: B) They are not efficient. 12. Human wants are greater than the resources that are available to satisfy them." This implies the need for A) Working harder. B) Asking for less. C) Leaving decisions to fate. D) Making choices to allocate resources. Show Answer Correct Answer: D) Making choices to allocate resources. 13. What is not an assumption of the PPC A) The economy only produces 2 goods or services. B) A certain percentage of resources will be wasted. C) The economy is using the latest methods. D) An economy cannot work beyond the PPC. Show Answer Correct Answer: B) A certain percentage of resources will be wasted. 14. Economics is based on the A) Market and free trade concepts. B) Allocation of scarce resources. C) Study of the stock market. D) Transfer of money. Show Answer Correct Answer: B) Allocation of scarce resources. 15. Which concept is most fundamentally related to scarcity? A) Benefits. B) Choice. C) External costs. D) Learned behaviors. Show Answer Correct Answer: B) Choice. 16. Economics is the study of how people ..... A) Grow things in their garden to have food to eat. B) Make, use and trade things to make their lives easier. C) Decided between goods and services. D) How to make money. Show Answer Correct Answer: B) Make, use and trade things to make their lives easier. 17. Define opportunity cost: A) When resources are limited, but wants are unlimited. B) The cost added by producing one additional unit of a product or service. C) The benefits that given up when you choose one thing over the next best alternative. D) Cost of one additional unit. Show Answer Correct Answer: C) The benefits that given up when you choose one thing over the next best alternative. 18. Which one of the following is an opportunity cost? A) You stay out late and your parents ground you. B) You run a red light and you get a ticket. C) You choose to give up math to study for history. D) In a softball game, you miss the ball and strike out. Show Answer Correct Answer: C) You choose to give up math to study for history. 19. Maggie decided to go to a concert in the park instead of studying the night before her CAHSEE. What is the opportunity cost? A) Studying. B) Park. C) Maggie. D) Concert. Show Answer Correct Answer: A) Studying. 20. What is the definition of opportunity cost? A) The next best alternative you give up. B) All of the choices you could have made but you didn't. C) The chance that you will lose your money. D) The money you spend to buy something. Show Answer Correct Answer: A) The next best alternative you give up. 21. "Opportunity cost" is related to the basic economic concept known as ..... A) Demand. B) Price. C) Scarcity. D) Supply. Show Answer Correct Answer: C) Scarcity. 22. You go to Target and pick 2 shirts. You only have enough money for 1 of them. One of them is on sale and the other is full price. You pick the one on sale. What is your choice? A) The money. B) Target. C) The full price shirt. D) The on sale shirt. Show Answer Correct Answer: D) The on sale shirt. 23. Emily went to the mall with enough money to buy Taylor Swift's new album or a dress. When she arrives at the store there is only one copy of the CD left. She buys the CD and leaves the mall. What is the opportunity cost? A) Taylor Swift. B) Taylor Swift's CD. C) Dress. D) Mall. Show Answer Correct Answer: C) Dress. 24. An economy that is producing the maximum amount of goods and services is considered A) Growing. B) Efficient. C) Trading off. D) Underutilized. Show Answer Correct Answer: B) Efficient. 25. Alicia goes to the cafeteria to buy a chicken patty. She was late leaving class and the line for the burritos is out the door. Alicia instead decides to eat a sandwich whose line was not as long. What is the opportunity cost? A) Chicken patty. B) Burrito. C) Sandwich. D) The lunch lines. Show Answer Correct Answer: B) Burrito. 26. Mr. Dunn usually does not give out prizes for lessons. He thought about it some and considered doing it, but he still did not. What is his opportunity cost? A) Giving students candy. B) Keeping students hungry. C) None of the above. D) None of above. Show Answer Correct Answer: A) Giving students candy. 27. A girl can't buy both a party dress and a new pair of shoes. She decides to buy just the dress. What are the shoes? A) Specialization. B) Barter. C) Opportunity cost. D) Interdependence. Show Answer Correct Answer: C) Opportunity cost. 28. The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. A) Trade-off. B) PPF. C) Scarcity. D) Opportunity cost. Show Answer Correct Answer: C) Scarcity. 29. If an economy is producing at a point inside its production possibility curve, then A) Consumption is greater than production. B) Productive resources are not used to their full potential. C) Production of capital goods is inadequate. D) It cannot benefit by specialisation and trade. Show Answer Correct Answer: B) Productive resources are not used to their full potential. 30. Which one of these items is a want and why? A) Hand soap:you want clean hands. B) Carrots:you want nutrients in your diet. C) Cake:you want a dessert every now and then. D) Apartment:you want a place to live. Show Answer Correct Answer: C) Cake:you want a dessert every now and then. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesOpportunity Cost Quiz 1Opportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity Cost Quiz 4Opportunity Cost Quiz 5Opportunity Cost Quiz 6Opportunity Cost Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books