, DOWNLOAD THE Test Bank for ECON Micro 1st Edition McEachern
d d d d d d d d d
Chapter 02 Economic Tools and Economic Systems
d d d d d d
MULTICHOICE
1. Whyddoesdopportunitydcostdexist?
(A) becaused technologyd isd fixedd atd anyd pointd ind time
(B) becaused thed lawd ofd comparatived advantaged isd working
(C) becaused resourcesd ared scarced butd wantsd ared unlimited
(D) becaused thed valued ofd lostd opportunitiesd variesd fromd persond tod person
Answerd :d (C)
2. Howdisdopportunitydcostddefined?
(A) asd thed valued ofd alld alternativesd NOTd chosen
(B) asd valued ofd thed bestd alternatived NOTd chosen
(C) asdtheddifferencedbetweendthedbenefitsdfromdadchoicedanddthedbenefitsdfromdthednextdbestd a
lternative
(D) asd thed differenced betweend thed benefitsd fromd ad choiced andd thed costsd ofd thatd choice
Answerd :d (B)
3. Supposed Rogerd hasd and hourd befored hisd nextd classd starts.d Hed cand study,d snack,d ord haved a
nap.dWhatdisdthisdconceptdknowndas?
d
(A) incentive
(B) opportunityd cost
(C) marginald cost
(D) specialization
Answerd :d (B)
4. Whatd isdthed opportunityd costd ofd and activity?
(A) thedamountd ofd moneydspentdond thedactivity
(B) thed valued ofd thed bestd alternatived NOTd chosen
mynursytest.store
, DOWNLOAD THE Test Bank for ECON Micro 1st Edition McEachern
d d d d d d d d d
(C) thed sumd ofd benefitsd fromd alld ofd thed sacrificedd alternatives
(D) thed differenced betweend thed benefitsd andd thed costsd ofd thatd activity
Answerd :d (B)
5. Whatd isd thed termd ford whatd youd gived upd tod getd and item?
(A) explicitd cost
(B) directd cost
(C) trued cost
(D) opportunityd cost
Answerd :d (D)
6. Whichd statementd describesd howd accuratelyd ad person'sd opportunityd costd cand bed measured?
(A) Itd cand bed easilyd andd accuratelyd calculated.
(B) Itd cannotd evend bed estimated.
(C) ItddoesdNOTdchangedoverdtime.
(D) Thed abilityd tod calculated itd varies,d dependingd ond timed andd circumstances.
Answerd :d (D)
7. Whatd isd beingd measuredd whend thed opportunityd costd ofd goingd tod colleged isd calculated?
(A) thed expensed ofd roomd andd board
(B) thed expensed ofd tuition
(C) thed expensed ofd roomd andd boardd plusd tuition
(D) thed incomed forgoned byd NOTd working,d plusd tuition
Answerd :d (D)
8. SupposedRashidadhasdthedchoicedofdworkingdfulldtimedduringdthedsummerdordgoingdtod s
ummerdschooldfulldtime.dThedcostdofdsummerdtuitiondanddbooksdared$3200.dIfdRashidad wo
rked,dshedcoulddmaked$7,000.dHerdrentdisd$1,000dfordthedsummer,dregardlessdofdherd choi
ce.dWhatdisdthedopportunitydcostdofdgoingdtodsummerdschool?
(A) $3,200
mynursytest.store
, DOWNLOAD THE Test Bank for ECON Micro 1st Edition McEachern
d d d d d d d d d
(B) $7,000
(C) $8,000
(D) $10,200
Answerd :d (D)
9. UpondgraduatingdfromdhighdschooldCarmendhasdadjobdoffer,danddthedjobdwoulddprovidedherd
withd $20,000d ind incomed ford thed comingd year.d Shed hasd alsod beend acceptedd tod Isaacd andd Avery
dCollege.d Tuitiond ford thed comingd yeard atd thed Colleged isd $15,000,d room d andd boardd isd $10,00
0,dandd shed expectsd thatd booksd willd costd $2,000.d Whatd isd thed opportunityd costd ofd attendingd Is
aacd&dAverydCollege?
(A) $37,000
(B) $32,000
(C) $27,000
(D) $20,000
Answerd :d (A)
10. Attendingdcollegedinvolvesdmanydexplicitdanddimplicitdcosts.dWhichdofdthedfollowingdbestdd
escribesdthedopportunitydcostdofdattendingdcollege?
(A) Itdisdentirelydmonetarydanddconsistsdofdexpendituresdondtuition,dbooks,dtransportation,dandd
meals.
(B) Itd isd NOTd monetary,d butd consistsd solelyd ofd forgoned income.
(C) Itd isd thed mostd valuedd alternatived givend upd tod attendd college.
(D) Itd isd negligibled ford mostd people,d becaused theyd reallyd haved nod choiced butd tod attendd college.
Answerd :d (C)
11. Indthedcontextdofdadpersondchoosingdwhetherdtodattenddcollegedordgodtodwork,dwhichdofdthed f
ollowingdbestddescribesdthedexpensesdassociateddwithdroomdanddboard?
(A) Roomdanddboarddisdandopportunitydcostdofdattendingdcollegedbecauseditdisdsubsidizeddbyd t
hedgovernmentdordbydthedcollege.
(B) Roomdanddboarddisdandopportunitydcostdofdattendingdcollegedbecauseditdinvolvesdcashde
xpenditures.
(C) Roomd andd boardd isd NOTd and opportunityd costd ofd attendingd colleged ifd thed studentd isd ond a
mynursytest.store
d d d d d d d d d
Chapter 02 Economic Tools and Economic Systems
d d d d d d
MULTICHOICE
1. Whyddoesdopportunitydcostdexist?
(A) becaused technologyd isd fixedd atd anyd pointd ind time
(B) becaused thed lawd ofd comparatived advantaged isd working
(C) becaused resourcesd ared scarced butd wantsd ared unlimited
(D) becaused thed valued ofd lostd opportunitiesd variesd fromd persond tod person
Answerd :d (C)
2. Howdisdopportunitydcostddefined?
(A) asd thed valued ofd alld alternativesd NOTd chosen
(B) asd valued ofd thed bestd alternatived NOTd chosen
(C) asdtheddifferencedbetweendthedbenefitsdfromdadchoicedanddthedbenefitsdfromdthednextdbestd a
lternative
(D) asd thed differenced betweend thed benefitsd fromd ad choiced andd thed costsd ofd thatd choice
Answerd :d (B)
3. Supposed Rogerd hasd and hourd befored hisd nextd classd starts.d Hed cand study,d snack,d ord haved a
nap.dWhatdisdthisdconceptdknowndas?
d
(A) incentive
(B) opportunityd cost
(C) marginald cost
(D) specialization
Answerd :d (B)
4. Whatd isdthed opportunityd costd ofd and activity?
(A) thedamountd ofd moneydspentdond thedactivity
(B) thed valued ofd thed bestd alternatived NOTd chosen
mynursytest.store
, DOWNLOAD THE Test Bank for ECON Micro 1st Edition McEachern
d d d d d d d d d
(C) thed sumd ofd benefitsd fromd alld ofd thed sacrificedd alternatives
(D) thed differenced betweend thed benefitsd andd thed costsd ofd thatd activity
Answerd :d (B)
5. Whatd isd thed termd ford whatd youd gived upd tod getd and item?
(A) explicitd cost
(B) directd cost
(C) trued cost
(D) opportunityd cost
Answerd :d (D)
6. Whichd statementd describesd howd accuratelyd ad person'sd opportunityd costd cand bed measured?
(A) Itd cand bed easilyd andd accuratelyd calculated.
(B) Itd cannotd evend bed estimated.
(C) ItddoesdNOTdchangedoverdtime.
(D) Thed abilityd tod calculated itd varies,d dependingd ond timed andd circumstances.
Answerd :d (D)
7. Whatd isd beingd measuredd whend thed opportunityd costd ofd goingd tod colleged isd calculated?
(A) thed expensed ofd roomd andd board
(B) thed expensed ofd tuition
(C) thed expensed ofd roomd andd boardd plusd tuition
(D) thed incomed forgoned byd NOTd working,d plusd tuition
Answerd :d (D)
8. SupposedRashidadhasdthedchoicedofdworkingdfulldtimedduringdthedsummerdordgoingdtod s
ummerdschooldfulldtime.dThedcostdofdsummerdtuitiondanddbooksdared$3200.dIfdRashidad wo
rked,dshedcoulddmaked$7,000.dHerdrentdisd$1,000dfordthedsummer,dregardlessdofdherd choi
ce.dWhatdisdthedopportunitydcostdofdgoingdtodsummerdschool?
(A) $3,200
mynursytest.store
, DOWNLOAD THE Test Bank for ECON Micro 1st Edition McEachern
d d d d d d d d d
(B) $7,000
(C) $8,000
(D) $10,200
Answerd :d (D)
9. UpondgraduatingdfromdhighdschooldCarmendhasdadjobdoffer,danddthedjobdwoulddprovidedherd
withd $20,000d ind incomed ford thed comingd year.d Shed hasd alsod beend acceptedd tod Isaacd andd Avery
dCollege.d Tuitiond ford thed comingd yeard atd thed Colleged isd $15,000,d room d andd boardd isd $10,00
0,dandd shed expectsd thatd booksd willd costd $2,000.d Whatd isd thed opportunityd costd ofd attendingd Is
aacd&dAverydCollege?
(A) $37,000
(B) $32,000
(C) $27,000
(D) $20,000
Answerd :d (A)
10. Attendingdcollegedinvolvesdmanydexplicitdanddimplicitdcosts.dWhichdofdthedfollowingdbestdd
escribesdthedopportunitydcostdofdattendingdcollege?
(A) Itdisdentirelydmonetarydanddconsistsdofdexpendituresdondtuition,dbooks,dtransportation,dandd
meals.
(B) Itd isd NOTd monetary,d butd consistsd solelyd ofd forgoned income.
(C) Itd isd thed mostd valuedd alternatived givend upd tod attendd college.
(D) Itd isd negligibled ford mostd people,d becaused theyd reallyd haved nod choiced butd tod attendd college.
Answerd :d (C)
11. Indthedcontextdofdadpersondchoosingdwhetherdtodattenddcollegedordgodtodwork,dwhichdofdthed f
ollowingdbestddescribesdthedexpensesdassociateddwithdroomdanddboard?
(A) Roomdanddboarddisdandopportunitydcostdofdattendingdcollegedbecauseditdisdsubsidizeddbyd t
hedgovernmentdordbydthedcollege.
(B) Roomdanddboarddisdandopportunitydcostdofdattendingdcollegedbecauseditdinvolvesdcashde
xpenditures.
(C) Roomd andd boardd isd NOTd and opportunityd costd ofd attendingd colleged ifd thed studentd isd ond a
mynursytest.store
