WorksheetsOpportunity Cost Quiz
Total questions: 13
Worksheet time: 13mins
Opportunity cost is the value of the next best alternative that is given up when a financial decision is made. True or False?
True
Maybe
False
Not sure
What is the opportunity cost of buying a new smartphone for $500 when the next best alternative is to invest the money in stocks with an expected return of 10%?
The opportunity cost is $250 (50% of $500)
The opportunity cost is $50 (10% of $500)
The opportunity cost is $100 (20% of $500)
The opportunity cost is $25 (5% of $500)
When a company decides to invest in new machinery instead of using the funds to expand its product line, what type of opportunity cost is being considered?
Production opportunity cost
Management opportunity cost
Capital opportunity cost
Labor opportunity cost
Opportunity cost is only related to money and financial decisions. True or False?
False
Not sure
True
Partly true
If a student chooses to work part-time to earn money instead of studying for an exam, what is the opportunity cost of their decision?
The money they could have spent on entertainment instead of working part-time
The money they could have borrowed from a friend instead of working part-time
The money they could have saved by not working part-time
The money they could have earned by working part-time
Production opportunity cost refers to the cost of producing one more unit of a good or service. True or False?
False
Maybe
True
Not sure
What is the production opportunity cost of a bakery that decides to use its ovens to bake cookies instead of bread?
Potential revenue or value from baking bread
Cost of purchasing new ovens
Cost of hiring additional staff
Cost of advertising the cookies
When a country decides to allocate more resources to producing cars and fewer resources to producing bicycles, what type of opportunity cost is being considered?
Opportunity cost
Fixed cost
Marginal cost
Sunk cost
Production opportunity cost is not relevant in decision-making for businesses. True or False?
False
True
Partially true
Not sure
If a factory can produce either 100 units of Product A or 50 units of Product B with the same resources, what is the production opportunity cost of choosing to produce Product B?
100 units of Product B
300 units of Product A
50 units of Product A
200 units of Product A
If a company decides to invest in employee training instead of buying new equipment, what is the opportunity cost of this decision?
The cost of the new equipment
The cost of the employee training
The potential increase in productivity from the new equipment
The potential increase in productivity from the employee training
What is the opportunity cost of a student choosing to study for an exam instead of working part-time?
The money they could have earned by working part-time
The knowledge they could have gained by studying
The money they could have saved by not studying
The money they could have borrowed from a friend instead of studying
When a business decides to spend its budget on advertising instead of research and development, what type of opportunity cost is being considered?
Marketing opportunity cost
Investment opportunity cost
Production opportunity cost
Research and development opportunity cost
