This quiz works best with JavaScript enabled. Home > Microeconomics > Costs > Opportunity Cost – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In economics, the value of the next best alternative is called ..... A) Scarcity. B) Productivity. C) Opprotunity Cost. D) Supply and Demand. Show Answer Correct Answer: C) Opprotunity Cost. 2. What is the main problem in economics? A) Scarcity. B) Shortage. C) Choices. D) Unemployment. Show Answer Correct Answer: A) Scarcity. 3. For example, if you are given $ 10 and you choose to go to the Burger King and spend that $ 10 and gave up the opportunity to go to KFC. Your next choice would have been buy candy. Your Trade-off would be A) Burger King. B) The mall. C) KFC. D) None of above. Show Answer Correct Answer: C) KFC. 4. Why must a government consider the opportunity cost of spending decisions A) To get the best value for money. B) Because the money comes from taxation. C) Because a choice is made between alternative uses. D) To meet all the people's needs. Show Answer Correct Answer: C) Because a choice is made between alternative uses. 5. Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie? SSEF1d DOK A) Fixed cost. B) Marginal cost. C) Residual cost. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 6. The economic problem is that A) Resources are limited and wants are limited. B) Resources are unlimited and wants are limited. C) Resources are limited and wants are unlimited. D) Resources are unlimited and wants are unlimited. Show Answer Correct Answer: C) Resources are limited and wants are unlimited. 7. The study of how people try make choices to satisfy seemingly unlimited and competing needs and wants. A) Economics. B) Scarcity. C) Paradox of Value. D) Utility. Show Answer Correct Answer: A) Economics. 8. When you make a choice, you often have to give up other options ..... those things are called the ..... A) Opportunity Cost. B) Missed Opportunities. C) Misused Resources. D) Scarce Options. Show Answer Correct Answer: A) Opportunity Cost. 9. The fact that it smells like dog food near the Purina Factory can be considered A) An external cost to the public. B) An external cost to the factory operators. C) An external cost to everyone involved. D) An external benefit to the factory operators. Show Answer Correct Answer: A) An external cost to the public. 10. Redirecting resources from one area to another is called ..... A) Opportunity costs. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: C) Reallocation. 11. Which one of these items is a need and why? A) DVD's:to entertain you when you get bored. B) A pool:to keep you cool and so you can relax. C) A million dollars:so you can be rich and possibly famous. D) A doctor:to provide medical help when needed. Show Answer Correct Answer: D) A doctor:to provide medical help when needed. 12. All of the following are ways to pay someone EXCEPT- A) Trade. B) Money. C) Read. D) Taxes. Show Answer Correct Answer: C) Read. 13. The goods used in the production process such as factories, machinery and equipment A) Land. B) Labor. C) Resources. D) Capital. Show Answer Correct Answer: D) Capital. 14. A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is A) 20 whips. B) 30 saddles. C) 50 whips. D) 60 saddles. Show Answer Correct Answer: C) 50 whips. 15. A natural disaster (flood, drought, tsunami) would cause what change in the PPC A) A shift of the PPC inward. B) A shift of the PPC outward. C) A shift along the curve. D) No change. Show Answer Correct Answer: A) A shift of the PPC inward. 16. Which of the following best refers to the additional cost a person or firm incur to produce one more unit? A) Consumer Benefit. B) Intersection. C) Marginal Benefit. D) Marginal Cost. Show Answer Correct Answer: D) Marginal Cost. 17. A Trade-off is A) A purchase in a marketplace. B) An alternative that we sacrifice when we make a decision. C) Any good or service a consumer needs. D) A factor of production. Show Answer Correct Answer: B) An alternative that we sacrifice when we make a decision. 18. The value of the next best alternative given up is called A) Opportunity Cost. B) Trade off. C) Scarcity. D) Economics. Show Answer Correct Answer: A) Opportunity Cost. 19. What is the production possibilities curve? A) A graph that shows how much an economy can produce between 2 goods. B) How much money something is. C) The opportunity one has to give up in order to gain something else. D) Land, labor, capital, entrepreneurs. Show Answer Correct Answer: A) A graph that shows how much an economy can produce between 2 goods. 20. Besides scarcity, economics is based on A) Mathematical theories. B) Morals. C) Human behavior. D) Social structures. Show Answer Correct Answer: C) Human behavior. ← PreviousNext →Related QuizzesMicroeconomics QuizzesOpportunity Cost Quiz 1Opportunity 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