Opportunity Cost Practice

It takes you half an hour to do a math assignment and two hours to do a micro assignment. What is the opportunity cost of you doing two math assignments?

• 1/2 micro assignments

• 1 micro assignments

• 2 micro assignments

• 4 micro assignments

Jenn won a free ride to four years of college. During these four years Jenn could also do any number of things, including:

I. Travel the world.

2. Work to gather savings and career experience.

3. Become an expert oboist.

Which of the following is the opportunity cost of Jenn attending college

• Zero

• Option 2

• The sum of option 1 to 3 and any other opportunities she passed up

• Whichever of 1 to 3 or any other opportunities she passed up is most valuable to her.

Daniel has $50 left over this week and he wants to contribute to a charitable cause. With $5, Daniel can feed one homeless person one meal. With $10, he can provide shelter for one homeless person one night. What is the opportunity cost of Daniel using all his money to shelter homeless people?

• Zero

• Depends on which option is most valuable to Daniel

• Depends on which option is most valuable to the homeless people in question

• 10 homeless meals

Which of the following movements would represent economic growth?

• W to Z

• U to Y

• Z to V

• V to X

Opportunity cost is best described by which of the following statements?

• The tradeoffs faced when choosing how to use a scarce resource

• The value of the next best option given up when making a decision

• The cost a buyer sees for something they want

• The price to a consumer of a good or service

Which of the following statements best captures the tradeoff between capital goods and consumption goods in economic growth?

• The shape of the PPF signifies that the resources needed to produce the two goods are very different

• The shape of the PPF signifies increasing opportunity cost

• The shape of the PPF signifies that the resources needed to produce the two goods are interchangeable.

• The shape of the PPF signifies and inefficient use of resources

Roger has a job at Starbucks, making $10 an hour. He can work as many hours as he wants. Roger also makes apple pies that he sells to a local bakery. The ingredients cost $3 per pie. It takes Roger one hour to make a pie. What is the opportunity cost of one of his pies?

• $3

• $10

• $13

• $23

Amanda has a job at Starbucks, making $10 an hour. She can work as many hours as she wants. The price of a ticket to a concert in Los Angeles is $100. It would take her six hours to drive to LA and return. The concert lasts for two hours. The gasoline for the trip would cost her $20. What is Amanda's opportunity cost of attending that concert?

• $100

• $110

• $200

• $210

My sister owns a lake cabin in Montana. She can rent it to summer vacationers for $1,000 a month during July. She would be willing to pay as much as $800to live in her cabin in July instead of her home in Texas. What is the opportunity cost for her to occupy her cabin in July instead of renting it out?

• $800

• $1000

• $1600

• $2000

All of the following are examples of opportunity cost except:

• The leisure time sacrificed to study for an exam

• The tuition fees paid to a university.

• The building which could have been built with the construction materials and labor used to build a new university library.

• The income which could have been earned by a college student had he or she worked full time instead of attending college.