Test Bank For Principles of Microeconomics 9th edition latest update full chapter /

1y
Copyrighty©y2017yPearsonyEducation,yInc.y
Microeconomics:yPrinciples,yApplications,yandyTools,y9ey(O'Sullivan)yy
Chaptery2yyyTheyKeyyPrinciplesyofyEconomicsy
y

2.1yyyTheyPrincipleyofyOpportunityyCosty
y

1)yTheyopportunityycostyofysomethingyisy
A)ytheycostyofytheylaboryusedytoyproduceyit.y
B)ywhatyyouysacrificeytoygetyit.y
C)ytheypriceychargedyforyit.y
D)ytheysearchycostyrequiredytoyfindyit.y
Answer:yyBy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyDefinitiony
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y
y

2)yTheyprincipleyofyopportunityycosty
A)yisymoreyrelevantyforyfirmsythanyforyindividuals.y
B)yonlyyrefersytoymonetaryypayments.y
C)yisyonlyyrelevantyinyeconomics.y
D)yisyapplicableytoyallydecisionymaking.y
Answer:yyDy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y
y

3)yTheyprincipleythatytheycostyofysomethingyisyequalytoywhatyisysacrificedytoygetyityisyknownyas
ythey

A)ymarginalyprinciple.y
B)yprincipleyofyopportunityycost.y
C)yprincipleyofydiminishingyreturns.y
D)yrealityyprinciple.y
Answer:yyBy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyDefinitiony
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y
y

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Copyrighty©y2017yPearsonyEducation,yInc.y
4)yTheysayingythaty"There'synoysuchythingyasyayfreeylunch"yrefersytoythey
A)ymarginalyprinciple.y
B)yspilloveryprinciple.y
C)yprincipleyofyopportunityycost.y
D)yrealityyprinciple.y
Answer:yyCy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y
5)yJacindayquityheryjobyasyayblackjackydealerywhereysheymadey$42,000yperyyearytoystartyheryo
wnyfloristy
business.yHerybusinessyexpensesyarey$14,000yperyyearyonyrent,y$21,000yperyyearyonysupplies
,yandy$9,000ypery
yearyonypartytimeyhelp.yAsyforyherypersonalyexpenses,yheryapartmentycostsyhery$12,000yperyy
earyandyhery
personalybillsyareyanyextray$6,000yperyyear.yWhatyisyJacinda'syopportunityycostyofyrunningyth
eybusiness?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-20y
y

6)yAnyunemployedyindividualydecidesytoyspendytheydayyfishing.yTheyopportunityycostyofyfishi
ngyisy
A)ytheycostyofybaityandyanyyotherymonetaryyexpenses.y
B)yzero,ybecauseytheypersonydoesn'tyhaveyayjob.y
C)ytheycostyofybait,yanyyotherymonetaryyexpenses,yandytheyvalueyofytheyindividual'sywagesywh
ileyheywasy
working.y
D)ytheycostyofybait,yanyyotherymonetaryyexpenses,yandytheyvalueyofytheybestyalternativeyuseyof
ythey

individual'sytime.y
Answer:yyDy

,Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyAnalyticaly
AACSB:yyAnalyticalyThinkingy
LearningyOutcome:yyMicro-20y
y

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yyyyyyyyyyyyyyyyyyyyyToolsy9thyEditionyOSullivan

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Copyrighty©y2017yPearsonyEducation,yInc.y
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-20y
8)yStevenylivesyinyaybigycityywhereythereyisyayshortageyofyparking.yHeyhasyayparkingyspotyinyhis
ydrivewayy

whereyheyparksyhisycar.yWhichyofytheyfollowingystatementsyisymostycorrect?y
A)yStevenyhasyayloweryopportunityycostyofyowningyaycarythanyhisyneighbor,ywhoymustyrentyay
parkingyspot.y
B)yTheyopportunityycostyofyusingytheyspotyisyzero,ybecauseyStevenyownsytheyhouse.y
C)yTheyopportunityycostyofyusingytheyparkingyspotyisytheypriceyheycouldychargeysomeoneyelsey
foryusingythey
spot.y
D)yTheyopportunityycostydependsyonyhowymuchySteven'symortgageypaymentyis.y
Answer:yyCy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyAnalyticaly
AACSB:yyAnalyticalyThinkingy
LearningyOutcome:yyMicro-20y
y

9)yYouyrentyayDVDyofyTheyDarkyKnightyRises.yTheyrentalyisyforysevenydaysyandyyouywatchythey
movieyonythey
firstyday.yYouytellyayfriendyaboutytheyfilmyandyyouryfriendyasksytoycomeyoveryandywatchytheym
ovieywithy

, youybeforeyityisydueyback.yWhatyisyyouryopportunityycostyifyyouydecideytoywatchytheymovieyays
econdytimey
insteadyofygoingytoyayfootballygame?y
A)ytheyentireycostyofytheymovieyrental,ysinceyyouyhaveyalreadyywatchedytheymoviey
B)yoneyhalfytheyrentalycost,ybecauseyyouyhaveyalreadyywatchedytheymovieyoneytimey
C)ytheyfootballygameyyouyforegoybyywatchingytheymovieyagainy
D)yTheyanswerydependsyonyhowymuchyyouylikedytheymovieyinytheyfirstyplace.y
Answer:yyCy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y
y

DOWNLOADyTHEyTestyBankyforyMicroeconomicsyPrinciplesyApplicationsyand
yyyyyyyyyyyyyyyyyyyyyToolsy9thyEditionyOSullivan

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Copyrighty©y2017yPearsonyEducation,yInc.y
10)yAngelina,yageyseven,ydecidesytoydressyupylikeyPrincessyFionayforyHalloween.yWhatyisytheyo
pportunityy
costyofyherydecision?y
A)ytheycostyofytheycostumey
B)ytheyfactythatysheycan'tydressyupylikeyDoraytheyExplorer,yherysecondychoicey
C)yzero,ybecauseyseven-year-oldsydon'tyhaveyopportunityycostsy
D)ytheycostyofytheyLadyyGagaycostumeywhichysheydidynotywanty
Answer:yyBy
Diff:y2y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y
11)ySpendingymoneyyonyaynewycaryinsteadyofyayusedycarywhenyyouyareyonyayfixedybudgetyisya
nyexampleyofy
A)ytheyincursionyofyanyopportunityycost.y
B)yisolatingyvariables.y
C)yaybadythingytoydoybecauseyyouyrunyoutyofymoney.y
D)ylivingyonytheyedge.y
Answer:yyAy
Diff:y1y
Topic:yyTheyPrincipleyofyOpportunityyCosty
Skill:yyConceptualy
AACSB:yyReflectiveyThinkingy
LearningyOutcome:yyMicro-20y