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m m m m m m m m m
Chapter 02 Economic Tools and Economic Systems
m m m m m m
MULTICHOICE
1. Whymdoesmopportunitymcostmexist?
(A) becausem technologym ism fixedm atm anym pointm inm time
(B) becausem them lawm ofm comparativem advantagem ism working
(C) becausem resourcesm arem scarcem butm wantsm arem unlimited
(D) becausem them valuem ofm lostm opportunitiesm variesm fromm personm to m person
Answerm :m (C)
2. Howmismopportunitym costmdefined?
(A) asm them valuem ofm allm alternativesm NOT m chosen
(B) asm valuem ofm them bestm alternativem NOT m chosen
(C) asmthemdifference mbetweenm thembenefitsmfrommamchoicemandm thembenefitsmfromm them nextmbe
stm alternative
(D) asm them difference m betweenm them benefitsm fromm am choicem andm them costsm ofm thatm choice
Answerm :m (B)
3. Supposem Roger m hasm anm hour m beforem hism nextm classm starts.m Hem canm study,m snack,m orm ha
vem amnap.mWhatmismthism conceptmknownmas?
(A) incentive
(B) opportunitym cost
(C) marginalm cost
(D) specialization
Answerm :m (B)
4. Whatmismthemopportunity mcostmofm anmactivity?
(A) themamountmofmmoney mspent monm the mactivity
(B) them valuem ofm them bestm alternativem NOT m chosen
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m m m m m m m m m
(C) them summ ofm benefitsm fromm allm ofm them sacrificedm alternatives
(D) them difference m betweenm them benefitsm andm them costsm ofm thatm activity
Answerm :m (B)
5. Whatm ism them termm for m whatm youm givem upm to m getm anm item?
(A) explicitm cost
(B) directm cost
(C) truem cost
(D) opportunitym cost
Answerm :m (D)
6. Whichm statementm describesm howm accuratelym am person'sm opportunitym costm canm bem measured
?
(A) Itm canm bem easilym andm accuratelym calculated.
(B) Itm cannotm evenm bem estimated.
(C) Itmdoes mNOT mchange mover mtime.
(D) Them abilitym to m calculatem itm varies,m dependingm onm timem andm circumstances.
Answerm :m (D)
7. Whatm ism beingm measuredm whenm them opportunitym costm ofm goingm to m collegem ism calculated?
(A) them expensem ofm roomm andm board
(B) them expensem ofm tuition
(C) them expensem ofm roomm andm boardm plusm tuition
(D) them incomem forgonem bym NOT m working,m plusm tuition
Answerm :m (D)
8. SupposemRashidamhasmthem choicemofm workingmfullm timem duringm themsummermormgoingm
to m summermschoolmfullm time.mThem costmofmsummermtuitionmandm booksmarem$3200.mIfmRas
hidam worked,mshemcouldm makem$7,000.mHermrentmism $1,000mform themsummer,mregardlessm
ofmherm choice.mWhatmismthemopportunitym costmofmgoingmto msummermschool?
(A) $3,200
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m m m m m m m m m
(B) $7,000
(C) $8,000
(D) $10,200
Answerm :m (D)
9. Uponmgraduatingmfromm highmschoolmCarmenmhasm amjobmoffer,mandm themjobmwouldmprovidemh
erm withm $20,000m inm incomem form them comingm year.m Shem hasm also m beenm acceptedm to m Isaacm an
dm AverymCollege.m Tuitionm form them comingm yearm atm them Collegem ism $15,000,m roomm andm boar
dm ism $10,000,mandm she m expectsm thatm booksm willm costm $2,000.m Whatm ism them opportunitym costm
ofm attendingm Isaacm &mAverymCollege?
(A) $37,000
(B) $32,000
(C) $27,000
(D) $20,000
Answerm :m (A)
10. Attendingmcollegem involvesm manymexplicitmandmimplicitmcosts.m Whichmofm themfollowingmbe
stmdescribesmthemopportunitymcostmofmattendingmcollege?
(A) Itmismentirelym monetarymandmconsistsmofmexpendituresmonm tuition,mbooks,m transportation,ma
ndmmeals.
(B) Itm ism NOT m monetary,m butm consistsm solelym ofm forgonem income.
(C) Itm ism them mostm valuedm alternativem givenm upm to m attendm college.
(D) Itm ism negligiblem for m mostm people,m becausem theym reallym havem no m choicem butm to m attendm colle
ge.
Answerm :m (C)
11. Inmthemcontextmofmampersonmchoosingm whether m to mattendmcollegemormgo mto m work,m whichmofmt
hem followingmbestmdescribesm themexpensesmassociatedm withmroommandmboard?
(A) Roommandmboardmismanmopportunitymcostmofmattendingmcollegembecausem itm ismsubsidizedm
bym themgovernmentmormbymthemcollege.
(B) Roommandmboardmismanmopportunitymcostmofmattendingmcollegembecausem itm involvesmca
shmexpenditures.
(C) Roomm andm boardm ism NOT m anm opportunitym costm ofm attendingm collegem ifm them studentm ism onm a
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m m m m m m m m m
scholarship.
(D) Roomm andm boardm ism NOT m usuallym partm ofm them opportunitym costm ofm attendingm collegem bec
ausemam personm requiresm am placem to m livem andm foodm to m eatm whether m orm NOT m attendingm colleg
e.
Answerm :m (D)
12. Besidesmthemcostmofmbooks,m tuition,mandmfees,mwhatmismanother mopportunitym costm
ofmattendingmcollegemfulltime?
(A) roommandmboard
(B) earningsm forgonem bym NOT m working
(C) them costm ofm another m collegem certificate
(D) them timem spentm atm college
Answerm :m (B)
13. Whichm economicm conceptm ism reflectedm bym them expressionm "timem ism money"?
(A) opportunitym cost
(B) specialization
(C) marketmexchange
(D) comparativemadvantage
Answerm :m (A)
14. Am testm ism scheduledm for m Mondaym morning.m Jamesm goesm to m am partym onm Saturdaym night,m b
utm ifmhem hadm NOT m attendedm them party,m hem couldm havem studiedm form the m testm orm gonem to m am mo
vie.m Whichmofmthemfollowingmismthemopportunitymcostmofmgoingmto mthemparty?
(A) onlym them timem spentm studyingm for m them test
(B) onlym them timem spentm goingm to m them movie
(C) bothm them timem spentm goingm to m them moviem andm them timem spentm studying
(D) either m them timem spentm goingm to m them moviem orm them timem spentm studyingm for m them test
Answerm :m (D)
15. Whichm ofm them followingm ism anm opportunitym costm ofm goingm to m college?
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m m m m m m m m m
Chapter 02 Economic Tools and Economic Systems
m m m m m m
MULTICHOICE
1. Whymdoesmopportunitymcostmexist?
(A) becausem technologym ism fixedm atm anym pointm inm time
(B) becausem them lawm ofm comparativem advantagem ism working
(C) becausem resourcesm arem scarcem butm wantsm arem unlimited
(D) becausem them valuem ofm lostm opportunitiesm variesm fromm personm to m person
Answerm :m (C)
2. Howmismopportunitym costmdefined?
(A) asm them valuem ofm allm alternativesm NOT m chosen
(B) asm valuem ofm them bestm alternativem NOT m chosen
(C) asmthemdifference mbetweenm thembenefitsmfrommamchoicemandm thembenefitsmfromm them nextmbe
stm alternative
(D) asm them difference m betweenm them benefitsm fromm am choicem andm them costsm ofm thatm choice
Answerm :m (B)
3. Supposem Roger m hasm anm hour m beforem hism nextm classm starts.m Hem canm study,m snack,m orm ha
vem amnap.mWhatmismthism conceptmknownmas?
(A) incentive
(B) opportunitym cost
(C) marginalm cost
(D) specialization
Answerm :m (B)
4. Whatmismthemopportunity mcostmofm anmactivity?
(A) themamountmofmmoney mspent monm the mactivity
(B) them valuem ofm them bestm alternativem NOT m chosen
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m m m m m m m m m
(C) them summ ofm benefitsm fromm allm ofm them sacrificedm alternatives
(D) them difference m betweenm them benefitsm andm them costsm ofm thatm activity
Answerm :m (B)
5. Whatm ism them termm for m whatm youm givem upm to m getm anm item?
(A) explicitm cost
(B) directm cost
(C) truem cost
(D) opportunitym cost
Answerm :m (D)
6. Whichm statementm describesm howm accuratelym am person'sm opportunitym costm canm bem measured
?
(A) Itm canm bem easilym andm accuratelym calculated.
(B) Itm cannotm evenm bem estimated.
(C) Itmdoes mNOT mchange mover mtime.
(D) Them abilitym to m calculatem itm varies,m dependingm onm timem andm circumstances.
Answerm :m (D)
7. Whatm ism beingm measuredm whenm them opportunitym costm ofm goingm to m collegem ism calculated?
(A) them expensem ofm roomm andm board
(B) them expensem ofm tuition
(C) them expensem ofm roomm andm boardm plusm tuition
(D) them incomem forgonem bym NOT m working,m plusm tuition
Answerm :m (D)
8. SupposemRashidamhasmthem choicemofm workingmfullm timem duringm themsummermormgoingm
to m summermschoolmfullm time.mThem costmofmsummermtuitionmandm booksmarem$3200.mIfmRas
hidam worked,mshemcouldm makem$7,000.mHermrentmism $1,000mform themsummer,mregardlessm
ofmherm choice.mWhatmismthemopportunitym costmofmgoingmto msummermschool?
(A) $3,200
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m m m m m m m m m
(B) $7,000
(C) $8,000
(D) $10,200
Answerm :m (D)
9. Uponmgraduatingmfromm highmschoolmCarmenmhasm amjobmoffer,mandm themjobmwouldmprovidemh
erm withm $20,000m inm incomem form them comingm year.m Shem hasm also m beenm acceptedm to m Isaacm an
dm AverymCollege.m Tuitionm form them comingm yearm atm them Collegem ism $15,000,m roomm andm boar
dm ism $10,000,mandm she m expectsm thatm booksm willm costm $2,000.m Whatm ism them opportunitym costm
ofm attendingm Isaacm &mAverymCollege?
(A) $37,000
(B) $32,000
(C) $27,000
(D) $20,000
Answerm :m (A)
10. Attendingmcollegem involvesm manymexplicitmandmimplicitmcosts.m Whichmofm themfollowingmbe
stmdescribesmthemopportunitymcostmofmattendingmcollege?
(A) Itmismentirelym monetarymandmconsistsmofmexpendituresmonm tuition,mbooks,m transportation,ma
ndmmeals.
(B) Itm ism NOT m monetary,m butm consistsm solelym ofm forgonem income.
(C) Itm ism them mostm valuedm alternativem givenm upm to m attendm college.
(D) Itm ism negligiblem for m mostm people,m becausem theym reallym havem no m choicem butm to m attendm colle
ge.
Answerm :m (C)
11. Inmthemcontextmofmampersonmchoosingm whether m to mattendmcollegemormgo mto m work,m whichmofmt
hem followingmbestmdescribesm themexpensesmassociatedm withmroommandmboard?
(A) Roommandmboardmismanmopportunitymcostmofmattendingmcollegembecausem itm ismsubsidizedm
bym themgovernmentmormbymthemcollege.
(B) Roommandmboardmismanmopportunitymcostmofmattendingmcollegembecausem itm involvesmca
shmexpenditures.
(C) Roomm andm boardm ism NOT m anm opportunitym costm ofm attendingm collegem ifm them studentm ism onm a
mynursytest.store
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m m m m m m m m m
scholarship.
(D) Roomm andm boardm ism NOT m usuallym partm ofm them opportunitym costm ofm attendingm collegem bec
ausemam personm requiresm am placem to m livem andm foodm to m eatm whether m orm NOT m attendingm colleg
e.
Answerm :m (D)
12. Besidesmthemcostmofmbooks,m tuition,mandmfees,mwhatmismanother mopportunitym costm
ofmattendingmcollegemfulltime?
(A) roommandmboard
(B) earningsm forgonem bym NOT m working
(C) them costm ofm another m collegem certificate
(D) them timem spentm atm college
Answerm :m (B)
13. Whichm economicm conceptm ism reflectedm bym them expressionm "timem ism money"?
(A) opportunitym cost
(B) specialization
(C) marketmexchange
(D) comparativemadvantage
Answerm :m (A)
14. Am testm ism scheduledm for m Mondaym morning.m Jamesm goesm to m am partym onm Saturdaym night,m b
utm ifmhem hadm NOT m attendedm them party,m hem couldm havem studiedm form the m testm orm gonem to m am mo
vie.m Whichmofmthemfollowingmismthemopportunitymcostmofmgoingmto mthemparty?
(A) onlym them timem spentm studyingm for m them test
(B) onlym them timem spentm goingm to m them movie
(C) bothm them timem spentm goingm to m them moviem andm them timem spentm studying
(D) either m them timem spentm goingm to m them moviem orm them timem spentm studyingm for m them test
Answerm :m (D)
15. Whichm ofm them followingm ism anm opportunitym costm ofm goingm to m college?
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