WorksheetsOpportunity Cost
Total questions: 8
Worksheet time: 8mins
The economic problem is that
resources are limited and wants are limited.
resources are unlimited and wants are limited.
resources are limited and wants are unlimited.
resources are unlimited and wants are unlimited.
The opportunity cost of a good is
its price in dollars and cents.
the alternative goods forgone.
the price of alternative goods foregone.
none of the other options
The opportunity cost of Australian households moving away from coal-powered energy to solar-powered energy includes (i) the loss of jobs in the coal industry, (ii) a cleaner environment, (iii) reduced coal production.
(i), (ii) and (iii)
(ii) and (iii)
(iii) only
(i) and (iii)
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
The production possibility curve shows
alternative combinations of two goods that an economy is capable of producing.
the actual levels of production of two goods that the economy is achieving.
alternative combinations of productive resources that can be used to produce two goods.
the total value of two goods produced in one time period.
If an economy is producing at a point inside its production possibility curve, then
consumption is greater than production.
productive resources are not used to their full potential.
production of capital goods is inadequate.
it cannot benefit by specialisation and trade.
When a country’s people and all its other resources are fully employed, which of the following must be true before more of any one item can be produced?
Less of another good or goods must be produced.
There must be a general rise in prices to encourage supply.
The government must intervene to produce needed products.
There must be a general fall in the general price level.
In terms of the production possibility curve, a decrease in unemployment would be best shown by
a movement along the curve.
an outward shift of the curve.
a movement from a point inside the curve to a point closer to the curve.
an inward shift of the curve.
