This quiz works best with JavaScript enabled. Home > Microeconomics > Costs > Opportunity Cost – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Opportunity Cost Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The opportunity cost is the value of the ..... that had to be given up f the alternative that was chosen. A) All the items. B) The next best alternative. C) The least important alternative. D) Everything except the item that was chosen. Show Answer Correct Answer: B) The next best alternative. 2. Which statement describes the typical relationship between a country's investment in human capital and its GDP? A) Investing in human capital decreases a country's GDP. B) Investing in human capital increases a country's GDP. C) Investing in human capital has no effect a country's GDP. D) None of above. Show Answer Correct Answer: B) Investing in human capital increases a country's GDP. 3. What is trade-off? A) Your choice. B) What you give up to make a choice. C) How much money you pay. D) The willingness to give something away. Show Answer Correct Answer: B) What you give up to make a choice. 4. ..... cost of the next best alternative use of money, time, or resources when one choice is made rather than another A) Trade-off. B) Opportunity cost. C) Need. D) Want. Show Answer Correct Answer: B) Opportunity cost. 5. Every business decision results in ..... and ..... A) Trade offs; opportunity. B) Trade offs; resources. C) Supply; demand. D) Scarcity; opportunity. Show Answer Correct Answer: A) Trade offs; opportunity. 6. Gurnee has 40 acres of unused land. They choose to build another mattress store. Which is NOT a logical Opportunity Cost of that choice? A) Using the land for farming. B) Building another McDonald's. C) Putting in new park. D) Giving WTHS students fancier Chromebooks. Show Answer Correct Answer: D) Giving WTHS students fancier Chromebooks. 7. How do we satisfy the greatest number of needs and wants? A) Specialization. B) Productivity. C) Allocation. D) Opportunity Cost. Show Answer Correct Answer: C) Allocation. 8. You have to make a choice between playing outside or playing Xbox. You choose to go outside. Playing Xbox is your ..... A) Opportunity cost. B) Fun. C) Economic choice. D) Happy place. Show Answer Correct Answer: A) Opportunity cost. 9. Tim wanted to go to the movies, beach, and water park. He chose the movies and would have picked the beach second, following would be an example of A) Trade-off. B) Need. C) Want. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 10. The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. Who has the absolute advantage in tools? A) Peru. B) U.S. C) Neither. D) Not enough info. Show Answer Correct Answer: B) U.S. 11. The using up of a resource A) Scarcity. B) Supply. C) Services. D) Consumption. Show Answer Correct Answer: D) Consumption. 12. The skills of people who are willing to invest time and money to run a buainess A) Labor. B) Land. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 13. ..... are people who use natural resources, human resources, and capital resources to make goods or provide services. A) Producers. B) Services. C) Wants. D) Resources. Show Answer Correct Answer: A) Producers. 14. Czareah Lattimer likes to be on television even though she needs some acting lessons. Being smart, she decided to get an acting coach. What is her opportunity cost? A) Having time to do other stuff. B) Working with the acting coach. C) None of the above. D) None of above. Show Answer Correct Answer: A) Having time to do other stuff. 15. ..... is the cost associated with giving up one thing for another. A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: A) Opportunity cost. 16. ..... IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES. A) Entrepreneurs. B) Capital. C) Labor. D) Land. Show Answer Correct Answer: B) Capital. 17. During WWII, resources were shifted from the citizens to the war effort. This is called resource ..... A) Opportunity cost. B) Rationing. C) Reallocation. D) Alternative. Show Answer Correct Answer: C) Reallocation. 18. Trade-offs create this. It is the thing that you DO NOT chose. It is what you have to give up in order to get something else. It is your 2nd BEST ALTERNATIVE. A) Trade-offs. B) Opportunity Cost. C) Scarcity. D) Production Possibilities Curve. Show Answer Correct Answer: B) Opportunity Cost. 19. Choosing to make cars instead of trucks results in A) Opportunity cost. B) Increased wealth. C) Expanding the production possibilities curve. D) Busy roads. Show Answer Correct Answer: A) Opportunity cost. 20. The opportunity cost of any action is ..... A) The time required but not the monetary cost. B) The highest-valued alternative forgone. C) All the possible alternatives forgone. D) The monetary cost but not the time required. Show Answer Correct Answer: B) The highest-valued alternative forgone. ← PreviousNext →Related QuizzesMicroeconomics QuizzesOpportunity Cost Quiz 1Opportunity Cost Quiz 2Opportunity Cost Quiz 3Opportunity 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