Opportunity Cost and PYF Quiz

What is the definition of opportunity cost?

• The cost of an opportunity

• The benefit of an opportunity

• The value of an opportunity

• The next best alternative given up when making a choice

How do you calculate opportunity cost?

• By dividing the benefit by the cost

• By subtracting the cost from the benefit

• By multiplying the cost by the benefit

• By adding the cost and the benefit

Which of the following factors affect opportunity cost?

• Supply and demand

• Scarcity and abundance

• Inflation and deflation

• All of the above

Which of the following is an example of opportunity cost?

• Choosing to go to a party instead of studying for an exam

• Buying a new phone with saved money

• Eating pizza for dinner instead of cooking at home

• Going on a vacation with friends

What is the definition of PYF?

• Pay Yourself First
  

• Plan Your Future

• Protect Your Finances

• Prioritize Your Family

Which of the following is true about opportunity cost?

• It is always monetary in nature

• It is the same for everyone

• It can be different for different individuals

• It is not a relevant concept in decision making

What is the opportunity cost of choosing to watch a movie instead of studying?

• The cost of the movie ticket

• The time spent watching the movie

• The knowledge gained from studying

• The enjoyment of watching the movie

Which of the following is NOT a factor affecting opportunity cost?

• Time

• Resources

• Preferences

• Weather

What is the opportunity cost of buying a new car?

• The cost of the car

• The value of the car

• The next best alternative that could have been purchased with the money

• The pleasure of owning a new car

Why is understanding opportunity cost important?

• It helps in making informed decisions

• It ensures maximum profit

• It eliminates the need for decision making

• It guarantees success in all endeavors