Ch. 03 Opportunity Costs

Production points on the PPC itself are

• Efficient but not attainable

• Effecient and attainable

• inefficient but not attainable

• inefficient and attainable

If a nation can increase its production of automobiles without decreasing its production of any other good, the nation must have been producing at a point

• within its PPC

• On its PPC

• Beyond its PPC

• None of the above are correct

At point a what is the opportunity cost

of producing one more video tape?

• 14 audio tapes

• 3 audio tapes

• 2 audio tapes

• there is no opportunity cost

At point b what is the opportunity

cost of producing one more video tape?

• 12 audio tapes

• 3 audio tapes

• 2 audio tapes

• There is no opportunity cost

A bowed-outward shape of a PPF

• Is due to scarcity

• reflects how some countries have more capital than others

• is due to constant opportunity costs

• is due to increasing opportunity costs

A straight line PPC

• Is due to scarcity

• reflects how some countries have more capital than others

• is due to constant opportunity costs

• is due to increasing opportunity costs

Harris could take a job making $200 or go to a free concert. if he goes to the concert, what is his opportunity cost?

• The fun of the concert

• $200

• The cost of the camera

• the cost of the gasoline to get to work

Wallace goes to the 7-11 with 3RMB. His 1st choice is a Coke, 2nd a Pepsi and 3rd a Fanta. If he buys the Coke, what is his opportunity cost?

• Both the Pepsi and the Fanta

• The Fanta only

• The Pepsi only

• there is no opporuntiy cost here

Carla faces a choice, pay $50 to go out to dinner with friends or go to work and make $100. What is Carla's opportunity cost if she goes out to dinner?

• $50

• $100

• $150

• $200

Which option best defines opportunity cost?

• the best alternative foregone

• the cost of the item purchased

• all the choices not made

• all the choices not purchased