ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identife the choice th
ID: 1138287 • Letter: E
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ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identife the choice that best completes the statement or answers the guestion. I. Opportunity cost exists because a. b. c. technology is fixed at any point in time the law of comparative advantage is working resources are scarce but wants are unlimited the value of lost opportunities varies from person to person efficiency is measured by the monetary cost of an activity 2. Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services a. Truc False 3. The opportunity cost of an activity is a. zero if you choose the activity voluntarily the amount of money spent on the activity the value of the best alternative not chosern b. the sum of benefits from all of the sacrificed alternatives e. the difference between the benefits and the costs of that activity The opportunity cost of college is the same for all students who are receiving full-tuition scholarships. a. True 4. False Attending college can be viewed as a form of 5. investment in which costs are borne today and benefits are received in the future b. investment in which benefits are received today and costs are borne in the future c. consumption, because learning is an enjoyable activity d. leisure, because learning is an enjoyable activity e. saving for the future The cost of attending college a. 6. is entirely monetary and consists of expenditures on tuition, books, transportation, and meals is not monetary, but consists solely of forgone income is the most valued alternative given up to attend college is negligible for most people, because they really have no choice but to attend college is the same whether you attend a public or a private college b. e. 7. It is possible for one person to have a comparative advantage in the production of all products? True b. False 8. If you and I agree to exchange four ginger snaps for one chocolate chip cookie, then it must be tru c. d. e. we are both at least as well off as we were before I am better off than I was before, but you are not you are better off than you were before, but I am not we are both better off than before we are both worse off than beforeExplanation / Answer
1. C.) Resources are scarce but wants are unlimited.
Opportunity cost exists because of scarcity.An opportunity cost is the amount of profit that is lost when a company makes a choice that leads them to making less money or even losing money when compared to an alternative. If a company decides to renovate their facility instead of buying a new one, the amount that could have been made at the new facility is the opportunity cost of the choice to renovate the facility.
2. B.) False
Opportunity cost measures the cost of something that one acquires,measured in terms of the sacrifice of the next best alternative.
3. C.) The value of the best activity not chosen.
The opportunity cost of an activity is the value of the next-best alternative that must be forgone in order to undertake the activity.
4. B.) False
With every cost comes an opportunity cost. It is not same for college and full tuition scholarships as it differs much.
[[Note: As per Chegg guidelines only first four questions to be answered.]]
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