ABF Lesson 3.3 CFU Review

Which of the following opportunity costs applies to this example: Spending time playing video games instead of doing homework due tomorrow

• opportunity cost of capital

• opportunity cost of labor

• opportunity cost of management

• none of the above

Which of the following opportunity costs applies to this example:

Researching features of different computers for the business instead of purchasing the first computer you look at.

• opportunity cost of capital

• opportunity cost of labor

• opportunity cost of management

• none of the above

Which of the following opportunity costs applies to this example:

Buying snacks after practice instead of saving money for a new car.

• opportunity cost of capital

• opportunity cost of labor

• opportunity cost of management

• none of the above

Which of the following potential business risks applies to:

capital investors are unavailable

• opportunity cost of capital

• opportunity cost of labor

• opportunity cost of management

• none of the above

Which of the following potential business risks applies to:

Your new safety protocols do not produce the desired outcome among employees

• opportunity cost of capital

• opportunity cost of labor

• opportunity cost of management

• none of the above

Which of the following potential business risks applies to:

Employees discover another local business will pay $2 more per hour to do the same type of work.

• opportunity cost of capital

• opportunity cost of labor

• opportunity cost of management

• none of the above

The net income for a strawberry business with projected sales of $2,000 and total expenses of $800 is $__________________.

What is the net return per $1.00 invested for the strawberry business with net income of $1200 and investment of $800

• $0.67/$1.00 invested

• $1.50/$1.00 invested

• $0.80/$1.00 invested

• none of the above

The net income for a cattle business with projected sales of $20,000 and total expenses of $15,000 is $__________________.

What is the net return per $1.00 invested for the cattle business with net income of $5,000 and investment of $15,000?

• $0.33/$1.00 invested

• $3.00/$1.00 invested

• $5.00/$1.00 invested

• none of the above