1.Kyle goes out to a club with his friends instead of staying home to study for

Question

1.Kyle goes out to a club with his friends instead of staying home to study for his Macroeconomics exam. What is Kyle's opportunity cost of going to the club?

Select one:

a. He does not have an opportunity cost because going to the club is his first choice

b. His third choice, which was to stay at home and watch movies on Netflix

c. The higher grade that he would have obtained if he stayed home and studied

d. The cover charge plus the costs of drinks at the club

e. His opportunity cost depends on the prevailing interest rates in the economy

2. Which of the following events is most likely to increase the price of coffee?

Select one:

a. An increase in the price of milk and sugar

b. A new study that shows that drinking coffee makes people smarter

c. A new fertilizer that increases the production of coffee

d. An increase in income tax

e. A drop in the number of consumers

3. Which of the following events will decrease the amounts of dollars exchanged in the Foreign Exchange Market and will cause the dollar to appreciate?

Select one:

a. If investors were expecting a rally (a rise in prices) in the New York Stock Exchange

b. If Asians and Europeans speculated on the dollar, expecting it to appreciate

c. If the U.S. imported more products from abroad

d. If there was a real-estate boom in the U.S. that attracted a lot of foreign investment

e. If fewer Americans traveled abroad

4. Melody works as a construction worker in Minneapolis. Her company stops working in December because it get dangerously cold outside. If Nicole is looking for another job she is:

Select one:

a. Frictionally Unemployed

b. Cyclically Unemployed

c. Geographically Unemployed

d. Seasonally Unemployed

e. Structurally Unemployed

Explanation / Answer

1. C. The higher grade that he would have obtained if he stayed home and studied

Explanation: Opportunity cost refers to the benefit given up or foregone by a person because of choosing another alternative or course of action. Kyle chose to go out to the club rather than studying or his Macroeconomics exam. So, Kyle gave up the benefit of obtaining a higher grade by choosing to go out to the club. So, the opportunity cost is the higher grade that he would have obtained if he stayed home and studied.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.