Point A is inefficient. The opportunity cost of an item is (a) the number of hours needed to earn money to buy the item. The opportunity cost of making a component part in a factory with no excess capacity is the: (CMA adapted) total manufacturing cost of the component. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. An optimal assignment requires that the maximum number of lines which can be drawn through squares with zero opportunity cost should be equal to the number of _____. 4. It’s necessary to consider two or more potential options and the benefits of each. d) I, II, and III. The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative. Opportunity cost can lead to optimal decision making when factors such as price, time, effort, and utility are considered. Ο Is Irrelevant In decision making because it occurred in the past. 10. What is the MARGINAL cost … Ο Requires a current outlay of cash. all of the human and capital resources used to produce product A. the retail price paid for product A. the amount of product B that cannot now be produced because of product A. … c) I and III only. Economic cost excludes: (a) Accounting cost + explicit cost (b) Accounting cost + implicit cost (c) Explicit cost + Implicit cost (d) Accounting cost + opportunity cost. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. rows or columns; rows and columns. answer choices . b) I and II only. ANSWERS: ECONOMICS MCQ 6. (b) what you give up to get that item. 10. The opportunity cost of producing more y is zero. (d) Cost Centres, Profit Centres and Investment Centres . Which item used in the production of textiles by a firm would an economist 9. Opportunity cost is the cost of taking one decision over another. Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost … Q.4. Labour immobility f. Products that do not have an opportunity cost 7. View answer rows+columns- 1; rows-columns. (A) opportunity cost 10. If total cost at 10 units is Rs 600 and Rs 640 for 11th unit. III. I. The opportunity cost of producing an additional unit of product A is. Products that have an opportunity cost 6. Since people must choose, they inevitably face trade-offs in which they have to give up things they desire to get other things they desire more. a) III only. The central role of markets is to determine the (A) quality of goods (B) quantity of goods (C) level of income (D) price of goods. variable manufacturing cost of the component. An opportunity cost Multiple Choice Ο is an unavoidable cost because it remains the same regardless of the alternative chosen. (c) usually less than the dollar value of the item. (B) capital 8. (C) Gini 9. net benefit foregone from the best alternative use of the capacity required. This cost is not only financial, but also in time, effort, and utility. The opportunity cost of producing more x is zero. II. The following TWO questions refer to the PPF diagram below. fixed manufacturing cost of the component. (C) land, labor, and capital 7. Ο Is the potential benefit lost by choosing a specific alternative course of action among two or more. (A) opportunity cost (B) purchasing power parity (C) disposable income (D) consumer price index. 2. The marginal cost of 11 th unit is: (a) Rs 20 (b) Rs 30 (c) Rs 40 (d) Rs 50. 8. 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