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Chapterg 02gEconomicg Toolsgandg Economicg Systems
MULTICHOICE
1. Whygdoesgopportunitygcostgexist?
(A) becauseg technologyg isg fixedg atg anyg pointg ing time
(B) becauseg theg lawg ofg comparativeg advantageg isg working
(C) becauseg resourcesg areg scarceg butg wantsg areg unlimited
(D) becauseg theg valueg ofg lostg opportunitiesg variesg fromg persong tog person
Answerg :g (C)
2. Howgisgopportunitygcostgdefined?
(A) asg theg valueg ofg allg alternativesg NOTg chosen
(B) asg valueg ofg theg bestg alternativeg NOTg chosen
(C) asgthegdifferencegbetweengthegbenefitsgfromgagchoicegandgthegbenefitsgfromgthegnextgbest
g alternative
(D) asg theg differenceg betweeng theg benefitsg fromg ag choiceg andg theg costsg ofg thatg choice
Answerg :g (B)
3. Supposeg Rogerg hasg ang hourg beforeg hisg nextg classg starts.g Heg cang study,g snack,g org hav
eg agnap.gWhatgisgthisgconceptgknowngas?
(A) incentive
(B) opportunityg cost
(C) marginalg cost
(D) specialization
Answerg :g (B)
4. Whatg isg theg opportunityg costg ofg ang activity?
(A) thegamountg ofg moneygspentgong thegactivity
(B) theg valueg ofg theg bestg alternativeg NOTg chosen
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(C) theg sumg ofg benefitsg fromg allg ofg theg sacrificedg alternatives
(D) theg differenceg betweeng theg benefitsg andg theg costsg ofg thatg activity
Answerg :g (B)
5. Whatg isg theg termg forg whatg youg giveg upg tog getg ang item?
(A) explicitg cost
(B) directg cost
(C) trueg cost
(D) opportunityg cost
Answerg :g (D)
6. Whichg statementg describesg howg accuratelyg ag person'sg opportunityg costg cang beg measured?
(A) Itg cang beg easilyg andg accuratelyg calculated.
(B) Itg cannotg eveng beg estimated.
(C) ItgdoesgNOTgchangegovergtime.
(D) Theg abilityg tog calculateg itg varies,g dependingg ong timeg andg circumstances.
Answerg :g (D)
7. Whatg isg beingg measuredg wheng theg opportunityg costg ofg goingg tog collegeg isg calculated?
(A) theg expenseg ofg roomg andg board
(B) theg expenseg ofg tuition
(C) theg expenseg ofg roomg andg boardg plusg tuition
(D) theg incomeg forgoneg byg NOTg working,g plusg tuition
Answerg :g (D)
8. SupposegRashidaghasgthegchoicegofgworkinggfullgtimegduringgthegsummergorggoinggto
g summergschoolgfullgtime.gThegcostgofgsummergtuitiongandgbooksgareg$3200.gIfgRashida
g worked,gshegcouldgmakeg$7,000.gHergrentgisg$1,000gforgthegsummer,gregardlessgofgher
g choice.gWhatgisgthegopportunitygcostgofggoinggtogsummergschool?
(A) $3,200
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(B) $7,000
(C) $8,000
(D) $10,200
Answerg :g (D)
9. UponggraduatinggfromghighgschoolgCarmenghasgagjobgoffer,gandgthegjobgwouldgprovidegher
gwithg $20,000g ing incomeg forg theg comingg year.g Sheg hasg alsog beeng acceptedg tog Isaacg andg A
verygCollege.g Tuitiong forg theg comingg yearg atg theg Collegeg isg $15,000,g roomg andg boardg isg $
10,000,gandg sheg expectsg thatg booksg willg costg $2,000.g Whatg isg theg opportunityg costg ofg atten
dingg Isaacg&gAverygCollege?
(A) $37,000
(B) $32,000
(C) $27,000
(D) $20,000
Answerg :g (A)
10. Attendinggcollegeginvolvesgmanygexplicitgandgimplicitgcosts.gWhichgofgthegfollowinggbest
g describesgthegopportunitygcostgofgattendinggcollege?
(A) Itgisgentirelygmonetarygandgconsistsgofgexpendituresgongtuition,gbooks,gtransportation,gand
g meals.
(B) Itg isg NOTg monetary,g butg consistsg solelyg ofg forgoneg income.
(C) Itg isg theg mostg valuedg alternativeg giveng upg tog attendg college.
(D) Itg isg negligibleg forg mostg people,g becauseg theyg reallyg haveg nog choiceg butg tog attendg college
.
Answerg :g (C)
11. Ingthegcontextgofgagpersongchoosinggwhethergtogattendgcollegegorggogtogwork,gwhichgofgthe
g followinggbestgdescribesgthegexpensesgassociatedgwithgroomgandgboard?
(A) Roomgandgboardgisgangopportunitygcostgofgattendinggcollegegbecausegitgisgsubsidizedgby
g theggovernmentgorgbygthegcollege.
(B) Roomgandgboardgisgangopportunitygcostgofgattendinggcollegegbecausegitginvolvesgcash
g expenditures.
(C) Roomg andg boardg isg NOTg ang opportunityg costg ofg attendingg collegeg ifg theg studentg isg ong a
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(D) Roomg andg boardg isg NOTg usuallyg partg ofg theg opportunityg costg ofg attendingg collegeg becau
segag persong requiresg ag placeg tog liveg andg foodg tog eatg whetherg org NOTg attendingg college.
Answerg :g (D)
12. Besidesgthegcostgofgbooks,gtuition,gandgfees,gwhatgisganothergopportunitygcostgof
g attendinggcollegegfulltime?
(A) roomgandgboard
(B) earningsg forgoneg byg NOTg working
(C) theg costg ofg anotherg collegeg certificate
(D) theg timeg spentg atg college
Answerg :g (B)
13. Whichg economicg conceptg isg reflectedg byg theg expressiong "timeg isg money"?
(A) opportunityg cost
(B) specialization
(C) marketgexchange
(D) comparativegadvantage
Answerg :g (A)
14. Ag testg isg scheduledg forg Mondayg morning.g Jamesg goesg tog ag partyg ong Saturdayg night,g but
ifgheg hadg NOTg attendedg theg party,g heg couldg haveg studiedg forg theg testg org goneg tog ag movie.g
g
Whichgofgthegfollowinggisgthegopportunitygcostgofggoinggtogthegparty?
(A) onlyg theg timeg spentg studyingg forg theg test
(B) onlyg theg timeg spentg goingg tog theg movie
(C) bothg theg timeg spentg goingg tog theg movieg andg theg timeg spentg studying
(D) eitherg theg timeg spentg goingg tog theg movieg org theg timeg spentg studyingg forg theg test
Answerg :g (D)
15. Whichg ofg theg followingg isg ang opportunityg costg ofg goingg tog college?
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Chapterg 02gEconomicg Toolsgandg Economicg Systems
MULTICHOICE
1. Whygdoesgopportunitygcostgexist?
(A) becauseg technologyg isg fixedg atg anyg pointg ing time
(B) becauseg theg lawg ofg comparativeg advantageg isg working
(C) becauseg resourcesg areg scarceg butg wantsg areg unlimited
(D) becauseg theg valueg ofg lostg opportunitiesg variesg fromg persong tog person
Answerg :g (C)
2. Howgisgopportunitygcostgdefined?
(A) asg theg valueg ofg allg alternativesg NOTg chosen
(B) asg valueg ofg theg bestg alternativeg NOTg chosen
(C) asgthegdifferencegbetweengthegbenefitsgfromgagchoicegandgthegbenefitsgfromgthegnextgbest
g alternative
(D) asg theg differenceg betweeng theg benefitsg fromg ag choiceg andg theg costsg ofg thatg choice
Answerg :g (B)
3. Supposeg Rogerg hasg ang hourg beforeg hisg nextg classg starts.g Heg cang study,g snack,g org hav
eg agnap.gWhatgisgthisgconceptgknowngas?
(A) incentive
(B) opportunityg cost
(C) marginalg cost
(D) specialization
Answerg :g (B)
4. Whatg isg theg opportunityg costg ofg ang activity?
(A) thegamountg ofg moneygspentgong thegactivity
(B) theg valueg ofg theg bestg alternativeg NOTg chosen
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(C) theg sumg ofg benefitsg fromg allg ofg theg sacrificedg alternatives
(D) theg differenceg betweeng theg benefitsg andg theg costsg ofg thatg activity
Answerg :g (B)
5. Whatg isg theg termg forg whatg youg giveg upg tog getg ang item?
(A) explicitg cost
(B) directg cost
(C) trueg cost
(D) opportunityg cost
Answerg :g (D)
6. Whichg statementg describesg howg accuratelyg ag person'sg opportunityg costg cang beg measured?
(A) Itg cang beg easilyg andg accuratelyg calculated.
(B) Itg cannotg eveng beg estimated.
(C) ItgdoesgNOTgchangegovergtime.
(D) Theg abilityg tog calculateg itg varies,g dependingg ong timeg andg circumstances.
Answerg :g (D)
7. Whatg isg beingg measuredg wheng theg opportunityg costg ofg goingg tog collegeg isg calculated?
(A) theg expenseg ofg roomg andg board
(B) theg expenseg ofg tuition
(C) theg expenseg ofg roomg andg boardg plusg tuition
(D) theg incomeg forgoneg byg NOTg working,g plusg tuition
Answerg :g (D)
8. SupposegRashidaghasgthegchoicegofgworkinggfullgtimegduringgthegsummergorggoinggto
g summergschoolgfullgtime.gThegcostgofgsummergtuitiongandgbooksgareg$3200.gIfgRashida
g worked,gshegcouldgmakeg$7,000.gHergrentgisg$1,000gforgthegsummer,gregardlessgofgher
g choice.gWhatgisgthegopportunitygcostgofggoinggtogsummergschool?
(A) $3,200
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(B) $7,000
(C) $8,000
(D) $10,200
Answerg :g (D)
9. UponggraduatinggfromghighgschoolgCarmenghasgagjobgoffer,gandgthegjobgwouldgprovidegher
gwithg $20,000g ing incomeg forg theg comingg year.g Sheg hasg alsog beeng acceptedg tog Isaacg andg A
verygCollege.g Tuitiong forg theg comingg yearg atg theg Collegeg isg $15,000,g roomg andg boardg isg $
10,000,gandg sheg expectsg thatg booksg willg costg $2,000.g Whatg isg theg opportunityg costg ofg atten
dingg Isaacg&gAverygCollege?
(A) $37,000
(B) $32,000
(C) $27,000
(D) $20,000
Answerg :g (A)
10. Attendinggcollegeginvolvesgmanygexplicitgandgimplicitgcosts.gWhichgofgthegfollowinggbest
g describesgthegopportunitygcostgofgattendinggcollege?
(A) Itgisgentirelygmonetarygandgconsistsgofgexpendituresgongtuition,gbooks,gtransportation,gand
g meals.
(B) Itg isg NOTg monetary,g butg consistsg solelyg ofg forgoneg income.
(C) Itg isg theg mostg valuedg alternativeg giveng upg tog attendg college.
(D) Itg isg negligibleg forg mostg people,g becauseg theyg reallyg haveg nog choiceg butg tog attendg college
.
Answerg :g (C)
11. Ingthegcontextgofgagpersongchoosinggwhethergtogattendgcollegegorggogtogwork,gwhichgofgthe
g followinggbestgdescribesgthegexpensesgassociatedgwithgroomgandgboard?
(A) Roomgandgboardgisgangopportunitygcostgofgattendinggcollegegbecausegitgisgsubsidizedgby
g theggovernmentgorgbygthegcollege.
(B) Roomgandgboardgisgangopportunitygcostgofgattendinggcollegegbecausegitginvolvesgcash
g expenditures.
(C) Roomg andg boardg isg NOTg ang opportunityg costg ofg attendingg collegeg ifg theg studentg isg ong a
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scholarship.
(D) Roomg andg boardg isg NOTg usuallyg partg ofg theg opportunityg costg ofg attendingg collegeg becau
segag persong requiresg ag placeg tog liveg andg foodg tog eatg whetherg org NOTg attendingg college.
Answerg :g (D)
12. Besidesgthegcostgofgbooks,gtuition,gandgfees,gwhatgisganothergopportunitygcostgof
g attendinggcollegegfulltime?
(A) roomgandgboard
(B) earningsg forgoneg byg NOTg working
(C) theg costg ofg anotherg collegeg certificate
(D) theg timeg spentg atg college
Answerg :g (B)
13. Whichg economicg conceptg isg reflectedg byg theg expressiong "timeg isg money"?
(A) opportunityg cost
(B) specialization
(C) marketgexchange
(D) comparativegadvantage
Answerg :g (A)
14. Ag testg isg scheduledg forg Mondayg morning.g Jamesg goesg tog ag partyg ong Saturdayg night,g but
ifgheg hadg NOTg attendedg theg party,g heg couldg haveg studiedg forg theg testg org goneg tog ag movie.g
g
Whichgofgthegfollowinggisgthegopportunitygcostgofggoinggtogthegparty?
(A) onlyg theg timeg spentg studyingg forg theg test
(B) onlyg theg timeg spentg goingg tog theg movie
(C) bothg theg timeg spentg goingg tog theg movieg andg theg timeg spentg studying
(D) eitherg theg timeg spentg goingg tog theg movieg org theg timeg spentg studyingg forg theg test
Answerg :g (D)
15. Whichg ofg theg followingg isg ang opportunityg costg ofg goingg tog college?
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