This quiz works best with JavaScript enabled. Home > Microeconomics > Costs > Opportunity Cost – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want A) Trade-off. B) Opportunity cost. C) Need. D) Want. Show Answer Correct Answer: B) Opportunity cost. 2. The factors of production is / are ..... needed to produce goods and services. A) Things. B) Resources. C) Energy. D) People. Show Answer Correct Answer: B) Resources. 3. ..... happened during WWII when American citizens were only allowed to have certain amounts of specified goods. A) Opportunity costs. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: B) Rationing. 4. Opportunity cost can also be called the ..... of your decision. A) Cost. B) Reward. C) Evaluation. D) Lost opportunity. Show Answer Correct Answer: A) Cost. 5. The factors of production include all of the following EXCEPT: A) Land. B) Labor. C) Capital. D) Entrepreneurs. Show Answer Correct Answer: D) Entrepreneurs. 6. These resources were limited during WWII because of ..... A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: B) Rationing. 7. Why do people trade? A) To make friends. B) To get things they already have. C) To be popular. D) To get things they need and want but do not have. Show Answer Correct Answer: D) To get things they need and want but do not have. 8. When you spend $ 100 on a new pair of shoes, what are some possible trade-offs? A) Two months membership at a gym that costs $ 50 a month. B) A new pair of jeans and shirt. C) A nice dinner with a friend. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. What types of goods were rationed during World War II? A) Clothing. B) Vehicle parts. C) Food. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. There are 18 students that want to use blue poster board for their project, but there are only 6 pieces of blue poster board available. We could state that there is a ..... for blue poster board. A) Supply. B) Demand. C) Benefit. D) Need. Show Answer Correct Answer: B) Demand. 11. What is the most basic problem of economics? A) Scarcity. B) Allocation. C) Productivity. D) Specialization. Show Answer Correct Answer: A) Scarcity. 12. You pick (1) Candy, (2) Magazine, (3) Soda. What is the opportunity cost for buying the candy? A) Both the magazine and the soda. B) The magazine. C) The soda. D) The candy. Show Answer Correct Answer: B) The magazine. 13. Which of the following reasons best describe why you NEED a new book? A) There's a movie version of the book coming out. B) Your friend told you that you should read the book. C) Your English teacher is requiring you to read the book. D) Many people at school have recommended it. Show Answer Correct Answer: C) Your English teacher is requiring you to read the book. 14. Opportunity cost is your ..... A) First choice. B) Second best alternative. C) Trade-off of a choice. D) Allocation of a good or service. Show Answer Correct Answer: B) Second best alternative. 15. The good or service that you give up when you make an economic choice is called ..... A) Opportunity cost. B) Economic choice. C) Specialization. D) Service. Show Answer Correct Answer: A) Opportunity cost. 16. Difference between wants and needs and available resources A) Economy. B) Factors of Production. C) Resources. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 17. Which one of these is NOT a cause of scarcity? A) Unlimited resources. B) Not enough materials. C) Poor Distribution of Resources. D) Rapid Increase in Demand. Show Answer Correct Answer: A) Unlimited resources. 18. A Latin phrase that means "all other things held constant." A) Ceteris pluribus. B) Ceteris paribus. C) Cretrian paribus. D) Cretplum paribas. Show Answer Correct Answer: B) Ceteris paribus. 19. Americans gave up resources in hopes for the freedom the war would provide. This is considered an ..... A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: A) Opportunity cost. 20. The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. What is the opportunity cost of producing a car in the U.S.? A) .5 tools. B) .5 cars. C) .75 cars. D) 1.3 tools. Show Answer Correct Answer: A) .5 tools. Next →Related QuizzesMicroeconomics QuizzesOpportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity Cost Quiz 4Opportunity Cost Quiz 5Opportunity Cost Quiz 6Opportunity Cost Quiz 7Opportunity Cost Quiz 8Opportunity Cost Quiz 9Opportunity Cost Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books