WorksheetsIntro to Opportunity Cost
Total questions: 5
Worksheet time: 25mins
What is meant by opportunity cost?
The best alternative forgone
The cost of the item selected
The cost of exploring business opportunities
The labour used in producing the product
A person decides to go to the university for three years, to study economics. If he had not gone, he could have taken up a job which would have paid him $15,000 per year. After he graduates he expects to find a job paying him $40,000 per year. What is the opportunity cost of going to university for him?
$15,000
$40,000
$45,000
$120,000
What are the characteristics of a free good
Has an opportunity cost - Takes resources to produce it
Has an opportunity cost - Takes no resources to produce it
Has no opportunity cost - Takes no resources to produce it
Has no opportunity cost - Takes resources to produce it
On his birthday, Kamran receives $200 from his aunt, $50 of which he decides to save. He is taken out by his father for lunch. His father pays the bill. Kamran spends the afternoon playing football. Which of these activities involves an opportunity cost?
Eating the free lunch
Playing football
Saving
What are the characteristics of an economic good
Has an opportunity cost - Takes resources to produce it
Has an opportunity cost - Takes no resources to produce it
Has no opportunity cost - Takes no resources to produce it
Has no opportunity cost - Takes resources to produce it
