Opportunity Cost Review Quiz

What is "opportunity cost"?

• The value of what you gain when choosing between two or more options.

• The value of what is produced when demand is high.

• The value of the profit gained when choosing an option.

• The value of what you lose when choosing between two or more options.

What are the two types of opportunity costs explained in the reading?

• Supply and Demand

• Organizational and Structural

• Explicit and Implicit

• None of the above

What are implicit costs?

• They are the lost opportunity to generate income through your resources.

• They are out-of-pocket payments such as purchasing a stock, an option, or spending money to improve your property.

• They are capital gained from the entrepreneur process.

• All of the above.

What are explicit costs?

• They are the lost opportunity to generate income through your resources.

• They are out-of-pocket payments such as purchasing a stock, an option, or spending money to improve your property.

• They are financial gains through free market processes.

• All of the above.

Explain the following economic principle....

"The same choice will have different opportunity costs for other people."

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