Principles, Applications, and Tools, 10e. solutions manual questions and answers 100%% 2024//

1y
Copyrighty©y2020yPearsonyEducation,yInc.y
Microeconomics:yPrinciples,yApplications,yandyTools,y10ey(O'Sullivan/Sheffrin/Perez)y
Chaptery2yyyTheyKeyyPrinciplesyofyEconomicsy
y

2.1yyyTheyPrincipleyofyOpportunityyCosty
y

1)yTheyopportunityycostyofysomethingyis:y
A)ytheycostyofytheylaboryusedytoyproduceyit.y
B)ywhatyyouysacrificeytoygetyit.y
C)ytheypriceychargedyforyit.y
D)ytheysearchycostyrequiredytoyfindyit.y
Answer:yyBy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyDefinitiony
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

2)yTheyprincipleyofyopportunityycost:y
A)yisymoreyrelevantyforyfirmsythanyforyindividuals.y
B)yonlyyrefersytoymonetaryypayments.y
C)yisyonlyyrelevantyinyeconomics.y
D)yisyapplicableytoyallydecision-making.y
Answer:yyDy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

3)yTheyprincipleythatytheycostyofysomethingyisyequalytoywhatyisysacrificedytoygetyityisyknownyas
ythe:y

A)ymarginalyprinciple.y
B)yprincipleyofyopportunityycost.y
C)yprincipleyofydiminishingyreturns.y
D)yrealityyprinciple.y
Answer:yyBy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyDefinitiony
AACSB:yyReflectiveyThinkingy

,LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

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Copyrighty©y2020yPearsonyEducation,yInc.y
4)yTheysayingythaty"There'synoysuchythingyasyayfreeylunch"yrefersytoythe:y
A)ymarginalyprinciple.y
B)yspilloveryprinciple.y
C)yprincipleyofyopportunityycost.y
D)yrealityyprinciple.y
Answer:yyCy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

5)yJacindayquityheryjobyasyayblackjackydealerywhereysheymadey$42,000yperyyearytoystartyheryo
wny
floristybusiness.yHerybusinessyexpensesyarey$14,000yperyyearyonyrent,y$21,000yperyyearyony
supplies,yandy$9,000yperyyearyonypartytimeyhelp.yAsyforyherypersonalyexpenses,yheryapartmen
ty
costsyhery$12,000yperyyearyandyherypersonalybillsyareyanyextray$6,000yperyyear.yWhatyisyJacin
da'sy
opportunityycostyofyrunningytheybusiness?y
A)y$104,000y
B)y$86,000y
C)y$62,000y
D)y$44,000y
Answer:yyBy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyAnalyticaly
AACSB:yyAnalyticalyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

6)yAnyunemployedyindividualydecidesytoyspendytheydayyfishing.yTheyopportunityycostyofyfishi

,ngyis:y
A)ytheycostyofybaityandyanyyotherymonetaryyexpenses.y
B)yzero,ybecauseytheypersonydoesn'tyhaveyayjob.y
C)ytheycostyofybait,yanyyotherymonetaryyexpenses,yandytheyvalueyofytheyindividual'sywagesywh
ileyhey
wasyworking.y
D)ytheycostyofybait,yanyyotherymonetaryyexpenses,yandytheyvalueyofytheybestyalternativeyuseyof
ythey

individual'sytime.y
Answer:yyDy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyAnalyticaly
AACSB:yyAnalyticalyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

DOWNLOADyTHEyTestyBankyforyMicroeconomicsyPrinciplesyApplicationsyand
yyyyyyyyyyyyyyyyyyyyToolsy10thyEditionyOSullivan

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7)ySupposeythatyyouyownyayhouse.yWhatyisytheyopportunityycostyofylivingyinytheyhouse?y
A)yThereyisynoyopportunityycostybecauseyyouyownytheyhouse.y
B)yThereyisynoyopportunityycostyunlessyyouycouldysetyupyaybusinessyinytheyhouse.y
C)yTheyopportunityycostyisytheyrentyyouycouldyhaveyreceivedyfromyaytenantyifyyouydidn'tyliveyt
here.y
D)yTheyopportunityycostyisytheycostyofyyourymonthlyymortgageypaymentyplusybills.y
Answer:yyCy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

8)yStevenylivesyinyaybigycityywhereythereyisyayshortageyofyparkingyspots.yHeyhasyayparkingyspot
yiny

hisydrivewayywhereyheyparksyhisycar.yWhichyofytheyfollowingystatementsyisymostycorrect?y
A)yStevenyhasyayloweryopportunityycostyofyowningyaycarythanyhisyneighbor,ywhoymustyrentyay
parkingyspot.y
B)yTheyopportunityycostyofyusingytheyspotyisyzero,ybecauseyStevenyownsytheyhouse.y

, C)yTheyopportunityycostyofyusingytheyparkingyspotyisytheypriceyheycouldychargeysomeoneyelsey
fory
usingytheyspot.y
D)yTheyopportunityycostydependsyonyhowymuchySteven'symortgageypaymentyis.y
Answer:yyCy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyAnalyticaly
AACSB:yyAnalyticalyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

9)yYouyrentyayDVDyofyTheyDarkyKnightyRises.yTheyrentalyisyforysevenydaysyandyyouywatchythey
movieyonytheyfirstyday.yYouytellyayfriendyaboutytheyfilmyandyyouryfriendyasksytoycomeyoveryan
dy
watchytheymovieywithyyouybeforeyityisydueyback.yWhatyisyyouryopportunityycostyifyyouydecidey
toy
watchytheymovieyaysecondytimeyinsteadyofygoingytoyayfootballygame?y
A)ytheyentireycostyofytheymovieyrental,ysinceyyouyhaveyalreadyywatchedytheymoviey
B)yoneyhalfytheyrentalycost,ybecauseyyouyhaveyalreadyywatchedytheymovieyoneytimey
C)yzero,ybecauseyyouyalreadyypaidyforytheyrentaly
D)ytheyfootballygameyyouyforegoybyywatchingytheymovieyagainy
Answer:yyDy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-
20:yApplyytheyconceptsyofyopportunityycost,ymarginalyanalysis,yandy
presentyvalueytoymakeydecisionsy
y

DOWNLOADyTHEyTestyBankyforyMicroeconomicsyPrinciplesyApplicationsyand
yyyyyyyyyyyyyyyyyyyyToolsy10thyEditionyOSullivan

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Copyrighty©y2020yPearsonyEducation,yInc.y
10)yAngelina,yageyseven,ydecidesytoydressyupylikeyPrincessyFionayforyHalloween.yWhatyisythey
opportunityycostyofyherydecision?y
A)ytheycostyofytheycostumey
B)ytheyfactythatysheycan'tydressyupylikeyDoraytheyExplorer,yherysecondychoicey
C)yzero,ybecauseyseven-year-oldsydon'tyhaveyopportunityycostsy
D)ytheycostyofytheyLadyyGagaycostumeywhichysheydidynotywanty
Answer:yyBy