Opportunity cost

A farmer decides to grow potatoes instead of wheat. What is the opportunity cost of growing the potatoes?

• the output of wheat

• the price of seed potatoes

• the profit from growing potatoes

• the time spent preparing the potato field

Which statement explains why the pay of doctors is usually higher than the pay of hospital cleaners?

• Doctors have a higher opportunity cost in qualifying

• Doctors have a more elastic supply than hospital cleaners.

• Hospital cleaners belong to trade unions with stronger bargaining powers

• Hospital cleaners have a more inelastic demand than doctors

A student decides to buy a ticket for a concert instead of buying a new shirt. What is the opportunity cost of buying the ticket?

• the concert

• the price of the ticket to the concert

• the shirt

• the time spent purchasing the ticket

In recent years more golf courses, which use large quantities of water, have opened in China. What is the opportunity cost of this?

• cost of water

• loss of farmland

• sales of golf equipment

• wages of golf course staff

A farmer reduces the land used to grow wheat from 80 hectares to 60 hectares and increases the use of the land for growing potatoes from 80 to 100 hectares. What is the opportunity cost of this change?

• The output from 20 hectares used for growing potatoes.

• The output from 20 hectares used for growing wheat.

• The output from 60 hectares used for growing wheat.

• The output from 80 hectares used for growing potatoes.

The Norwegian government chose to spend the profits from oil on stocks, bonds and property. The possibility of improving domestic infrastructure, therefore, was not taken. Which economic concept does this best illustrate?

• cost of production

• finite resources

• opportunity cost

• production possibility frontier

Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?

• fishing with a friend

• going to a concert

• partying on Friday

• there is no opportunity cost

Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?

• a trip to the beach

• a trip to the mountains

• a trip to her friends house

• there is no opportunity cost

A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is

• 20 whips

• 30 saddles

• 50 whips

• 60 saddles

Which one of the following is an opportunity cost?

• You stay out late and your parents ground you.

• You run a red light and you get a ticket.

• You choose to give up math to study for history.

• In a softball game, you miss the ball and strike out.