DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
1. xxOpportunityxcostxexistsxbecause:
a. technologyxisxfixedxatxanyxpointxinxtime.
b. thexlawxofxcomparativexadvantagexisxworking.
c. resourcesxarexscarcexbutxwantsxarexunlimited.
d. thexvaluexofxlostxopportunitiesxvariesxfromxpersonxtoxperson.
e. efficiencyxisxmeasuredxbyxthexmonetaryxcostxofxanxactivity.
ANSWER: c
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopportunity
xcost.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopport
unityxcost.xSeex2-1:xChoicexandxOpportunityxCost
c. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxoppo
rtunityxcost.xSeex2-1:xChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopport
unityxcost.xSeex2-1:xChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopport
unityxcost.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Moderate
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xUnderstand
2. Opportunityxcostxisxdefinedxasxthe:
a. dollarxcostxofxwhatxisxpurchased.
b. valuexofxallxalternativesxnotxchosen.
c. valuexofxthexbestxalternativexnotxchosen.
d. differencexbetweenxthexbenefitsxfromxaxchoicexandxthexbenefitsxfromxthexnextxbestxalternative.
e. differencexbetweenxthexbenefitsxfromxaxchoicexandxthexcostsxofxthatxchoice.
ANSWER: c
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
c. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Moderate
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
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,DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xRemember
3. Supposexyouxhavexanxhourxbeforexyourxnextxclassxstarts.xYouxcanxeitherxreadxaxbook,xgetxsomethingxtoxeat,xorxtakexaxnap.x
Thexopportunityxcostxofxgettingxsomethingxtoxeatxis:
a. thexcostxofxwhatxyouxeat.
b. thexvaluexofxreadingxandxsleeping.
c. thexlossxofxvaluexfromxnotxreadingxorxsleeping.
d. thexnetxbenefitxofxsleepingxforxanotherxhour.
e. impossiblextoxdeterminexbecausexthexmostxpreferredxalternativexisxnotxknown.
ANSWER: e
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
c. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
e. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Moderate
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xUnderstand
4. Thexopportunityxcostxofxanxactivity:
a. dependsxonxanxindividual'sxsubjectivexvaluesxandxopinions.
b. isxthexsamexforxeveryone.
c. mustxbexcalculatedxandxknownxbeforexundertakingxthatxactivity.
d. isxirrelevantxtoxdecisionxmaking.
e. isxnotxrelatedxtoxtime.
ANSWER: a
FEEDBACK: a.x Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
c. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
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,DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
forgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-
1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Easy
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xRemember
5. Thexopportunityxcostxofxchoosingxaxparticularxactivity:
a. canxbexeasilyxandxaccuratelyxcalculated.
b. cannotxbexestimated.
c. doesxnotxchangexoverxtime.
d. variesxdependingxonxtimexandxcircumstances.
e. isxmeasuredxbyxthexmoneyxspentxonxthexactivity.
ANSWER: d
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircum
stance.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforg
one.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
c. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforg
one.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
d. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforgo
ne.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforg
one.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Easy
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xRemember
6. Supposexyouxhavexaxchoicexofxworkingxfull-timexduringxthexsummerxorxgoingxfull-
timextoxsummerxschool.xSummerxtuitionxandxbooksxarex$2,200.xIfxyouxworked,xyouxcouldxmakex$7,000.xYourxrentxisx$1,0
00xforxthexsummer,xregardlessxofxyourxchoice.xIfxthesexarexthexonlyxrelevantxcostsxtoxconsider,xthexopportunityxcostxofxgoin
gxtoxsummerxschoolxis:
a.x $2,200.
b.x$7,000.
c.x $8,000.
d.x$9,200.
e.x $10,200.
ANSWER: d
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
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, DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
forgone.xThexcostxofxattendingxsummerxschoolxtakesxintoxaccountxwagesxforgone
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x x x x x x x x x
Edition McEachern x
1. xxOpportunityxcostxexistsxbecause:
a. technologyxisxfixedxatxanyxpointxinxtime.
b. thexlawxofxcomparativexadvantagexisxworking.
c. resourcesxarexscarcexbutxwantsxarexunlimited.
d. thexvaluexofxlostxopportunitiesxvariesxfromxpersonxtoxperson.
e. efficiencyxisxmeasuredxbyxthexmonetaryxcostxofxanxactivity.
ANSWER: c
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopportunity
xcost.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopport
unityxcost.xSeex2-1:xChoicexandxOpportunityxCost
c. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxoppo
rtunityxcost.xSeex2-1:xChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopport
unityxcost.xSeex2-1:xChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xBecausexofxscarcity,xwheneverxwexmakexaxchoice,xwexincurxanxopport
unityxcost.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Moderate
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xUnderstand
2. Opportunityxcostxisxdefinedxasxthe:
a. dollarxcostxofxwhatxisxpurchased.
b. valuexofxallxalternativesxnotxchosen.
c. valuexofxthexbestxalternativexnotxchosen.
d. differencexbetweenxthexbenefitsxfromxaxchoicexandxthexbenefitsxfromxthexnextxbestxalternative.
e. differencexbetweenxthexbenefitsxfromxaxchoicexandxthexcostsxofxthatxchoice.
ANSWER: c
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
c. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Moderate
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
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,DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xRemember
3. Supposexyouxhavexanxhourxbeforexyourxnextxclassxstarts.xYouxcanxeitherxreadxaxbook,xgetxsomethingxtoxeat,xorxtakexaxnap.x
Thexopportunityxcostxofxgettingxsomethingxtoxeatxis:
a. thexcostxofxwhatxyouxeat.
b. thexvaluexofxreadingxandxsleeping.
c. thexlossxofxvaluexfromxnotxreadingxorxsleeping.
d. thexnetxbenefitxofxsleepingxforxanotherxhour.
e. impossiblextoxdeterminexbecausexthexmostxpreferredxalternativexisxnotxknown.
ANSWER: e
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
c. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
e. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Moderate
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xUnderstand
4. Thexopportunityxcostxofxanxactivity:
a. dependsxonxanxindividual'sxsubjectivexvaluesxandxopinions.
b. isxthexsamexforxeveryone.
c. mustxbexcalculatedxandxknownxbeforexundertakingxthatxactivity.
d. isxirrelevantxtoxdecisionxmaking.
e. isxnotxrelatedxtoxtime.
ANSWER: a
FEEDBACK: a.x Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
c. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
d. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexf
orgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-1:
ChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
CopyrightxCengagexLearning.xPoweredxbyxCognero. Pagex2
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
forgone.xThexvaluexofxanxopportunityxlostxisxaxsubjectivexmeasure.xSeex2-
1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Easy
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xRemember
5. Thexopportunityxcostxofxchoosingxaxparticularxactivity:
a. canxbexeasilyxandxaccuratelyxcalculated.
b. cannotxbexestimated.
c. doesxnotxchangexoverxtime.
d. variesxdependingxonxtimexandxcircumstances.
e. isxmeasuredxbyxthexmoneyxspentxonxthexactivity.
ANSWER: d
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
forgone.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircum
stance.xSeex2-1:xChoicexandxOpportunityxCost
b. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforg
one.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
c. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforg
one.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
d. Correct.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforgo
ne.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
e. Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternativexforg
one.xItxisxaxsubjectivexmeasure,xrequiresxtimexandxinformation,xandxvariesxwithxcircu
mstance.xSeex2-1:xChoicexandxOpportunityxCost
POINTS: 1
DIFFICULTY: Easy
LEARNINGxOBJECTIVES:x MACR.MCEACH.17.02.01x-xDescribexthexrelationshipxbetweenxchoicexandxopportunityxcost
NATIONALxSTANDARDS:x UnitedxStatesx-xBUSPROG:xAnalyticx-xCommunicationxAbilities
TOPICS: ChoicexandxOpportunityxCost
KEYWORDS: Bloom's:xRemember
6. Supposexyouxhavexaxchoicexofxworkingxfull-timexduringxthexsummerxorxgoingxfull-
timextoxsummerxschool.xSummerxtuitionxandxbooksxarex$2,200.xIfxyouxworked,xyouxcouldxmakex$7,000.xYourxrentxisx$1,0
00xforxthexsummer,xregardlessxofxyourxchoice.xIfxthesexarexthexonlyxrelevantxcostsxtoxconsider,xthexopportunityxcostxofxgoin
gxtoxsummerxschoolxis:
a.x $2,200.
b.x$7,000.
c.x $8,000.
d.x$9,200.
e.x $10,200.
ANSWER: d
FEEDBACK: a.x Incorrect.xThexopportunityxcostxofxanxactionxisxthexvaluexofxthexbestxalternative
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, DOWNLOAD THE Test Bank for Microeconomics Contemporary Introduction11th
x x x x x x x x x
Edition McEachern x
forgone.xThexcostxofxattendingxsummerxschoolxtakesxintoxaccountxwagesxforgone
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