d. 1/4 bread. Additionally, what activity do you feel you have comparative advantage in? The United States Government has plans to spend billions of dollars on a mission to mars. True or false? Is... What is an opportunity cost and how does it affect our daily lives? This decision carried with it a: a. zero... Illustrate opportunity cost with a production possibilities curve (this would involve any two products and numbers). She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. 2 2. Which of the following statements is false about the concept of opportunity cost? 2 3. Also, how could the student maximize his net benefit after receiving his college degree? If Fran can produce either 15 pizzas or 50 cheesecakes per da... Juan can either mow 2 lawns or clean 4 windows in 5 hours. II... A consultant who earns $100 per hour takes four hours off work to go to the movies. The table shows an economy that produces education services and consumption goods. a). She/he can carry on that activity with the lowest amount of resources. False . Going to concerts and reading books take time and money. This assessment is worth 24 points and inc C. a positive statement. Hal currently works as the fry guy at Burger Haven but is thinking of quitting his job to attend college full-time next semester. 1. What is her opportunity cost of 1 cake in terms of knitted sweaters? True b. What is the opportunity cost to him of studying? The opportunity cost of attending college is likely to be highest for a high school graduate: A) who has access to student loans. Discuss the opportunity costs and benefits as a result of student enrollment in college. Initially, suppose Bellissima uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce... Frances is a skilled toymaker who is able to produce both trucks and drums. False. 500 houses B. In a month, Carlos can produce a maximum of either 30 bushels of pears or 15 bushels of apples, or any linear combination in between. Waterways have fixed costs of $0.20 per unit that cannot... A student has only a few hours to prepare for two different exams tomorrow morning. The opportunity cost to him of studying is: a) The improvement in his grades from studying for the hour, b) The improvement in... Ramona decides to spend two hours taking a nap rather than attending her classes. 2. What is the relative price of cars in Mexico? a) The decision to make or buy a new part. D. opportunity costs. The material costs that go into producing another shoe in that factory b. An electrician quits her current job, which pays $40,000 per year. The opportunity cost of a choice X is best described as the: a) Combined value of all alternatives that are more valuable than choice X, b) Combined value of all alternatives that are inferior to c... Max is considering going to culinary school to become a chef. color:#000!important; She can clear a clogged drain in 6 minutes, about 10 time... Suzane owns antique furniture that she bought for $12,000 ten years ago. Investing 100,000 in additional raw materials, mostly palladium, should allow cryogenic concepts to increase production and earn an additional 112,000 next year. Is it ever really true that you “don’t have a choice”? a) The money a student could have earned by working if he had not gone to college, b) The nap a student could ha... A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Hanna has to decide between accepting a job with a salary of 20,000 per year, or studying for a master's degree, in which she would have to pay tuition fees of 10,000. When does the opportunity cost of holding money decrease or increase, and how does people's desire to hold money change? What is an opportunity cost, and how does the idea relate to the definition of economics? It can be given a monetary value. Who has the comparative advantage in making pens? Thus the producti... Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. b. two dozen eggs. True or False? The US and Mexico both have 40 workers. Devaughn and Grace can produce forks and spoons according to the following schedule: If Devaughn makes 9 spoons, how many forks does he make? Define opportunity cost of economic growth. Absolute Advantage. b. why? What is the opportunity cost of making cars in South Korea? Rate your day so far – good day or bad day? What is the (opportunity) cost, in dollars, of purchasing the frog? Create an account to browse all assets today, Biological and Biomedical Karl's opportunity cost of... Use the Production Possibilities Curves for U.S. and Mexico to determine: i. OPPORTUNITY COST LESSON: Opportunity Cost Lesson What is economics lesson. B. neither explicit costs nor implicit costs. B. a cost that is irrelevant to the business. Is there an exception to this relationship rule. What is the (opportunity) cost of purchasing the frog? You will need to calculate the opportunity cost for a particular path. c. opportunity costs. Tommy's oppor... i. Winnie and Tigger both need to gather honey and also pick some berries. Use formulas or diagrams that could complete your description. The states that the opportunity cost of producing a good always rises as you produce more of it. Identify his opportunity costs. You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. What is the opportunity cost of his decision? b. the sum of all opportunity costs confronting a consumer. If the existing firms are earning positive economic profits in your market, there is an incentive for other firms to enter this market. What is correct about __opportunity cost__? what are the benefits of skipping breakfast? did you and your partner make the same choice in a situation, but for different reasons? b. a zero accounting profit. Offer a likely explanation, using the concept of opportunity cost of leisure. ii. Suppose a country, when operating on its PPF, can produce 25 tons of corn and 60 tons of wheat or 26 tons of corn and 57 tons of wheat. D) relevant to decision making. D. an explicit cost. Given a budget of 5 hours studying Math and Economics exams, what is the maximum possible combined test score could this student earn? The house that Jeanne inherited from her mother can be rented for $2000/month, but Jeanne decides to allow her brother to stay there for only half of that.

#mc_embed_signup select { compare notes with your partner on which choice you would make, discuss how you and your partner valued the costs and benefits differently. b. the cost of living is always increasing. A clean environment is the opportunity cost. The opportunity cost for Jeremiah of going to a water park is: a. His tradeoff is Select one: a. nothing, because he enjoys playing basketball more than working. What is opportunity cost of an investment? B) there will be... Heston and Burton, CPA's, currently work a five-day week. In other words, if with the resources used in the chosen activity you could have done others A plus B plus C, but not … In creating your response, consider the fol... Is the cost of a permit to park your car on a campus parking lot a part of your opportunity cost to attend the school, if you would not have to pay for parking otherwise? Imagine you are graduating college and a new start-up company offers you $32,000 in salary and $10,000 stock options priced at .01 per share. #mc_embed_signup select#mce-group[21529] { Suppose farmers have land that is suitable for growing both wheat and soybeans. b. When faced with all available alternatives, the consumer will select the one that is ranked the highest. In moving production allocations from points B to D on the Production Possibilities Frontier, the opportunity cost of production at Point C is {Blank} unit(s) of {Blank} goods. Zappa now draws an annual salary of $15,000. True b. Why or why not? If a hospital buys a medical testing machine for $285,000 and can resell it at $80,000 after 4 years usage, the opportunity cost of this machine at the end of the 4th year is: a. What is the opportunity cost of the war on drugs? Comparative advantage, b. The value of a good that is given up to produce another is called: a. dollar cost b. opportunity cost c. relative cost d. absolute cost. Akbar can write 5 pages or bake 1 pie in an hour. If the annual market interest rate is 20%, what is the annual opportunity cost of having $50 cash in your pocket? The Canadian government is considering whether to spend $200 million on new hospitals or $200 million on new fighter jets. Which statement is true about opportunity cost? Watch a Video. Let's say Lucy doesn't enjoy dealing with numbers. The opportunity cost of attending class this evening is A. Elite U costs $50,000 per year and did not offer Lutfi any financial aid. 1. Suppose Peyton can do the job in 2 hours, or he can hire a gardener, Kris, to do it in 3 hours. Then consider what else you could be doing with your time or money if you decided not to engage in those activities. Consider Frank's decision to go to college. What would the production possibilities curve actually mean? The value of other goods and services you could have purchased with the money you spent on the car. Suppose you win $500 from a scratch-off ticket. b. the improvement in his grades f... Mallory decides to spend three hours working overtime rather than watching a video with her friends. © copyright 2003-2021 Study.com. Opportunity cost is: a. the money a business loses in a bad investment. Suppose after graduating from college you get a job working at a bank earning $30,000 per year. The US and Mexico both have 40 workers. (Do good days have high or low opportunity costs?). Which of the following is not an example of the opportunity cost of going to school? Define: decision-making In the second column, the opportunity cost. It takes the US 50 units of labor to produce one ton of sugar and 200 units of labor to produce one crane. Suppose that Lo and Manuel can either run errands or wash dishes. Benefits foregone by not choosing an alternative course of action. b. the value of the best foregone opportunity. The opportunity cost of a choice is the value of the best alternative given up. You have a sa... What is meant by the opportunity cost of an item or activity? a. law of increasing relative cost b. law of positive economics c. law of demand d. production possi... You graduate from the University in 3 months. For each decision you made, rate the opportunity cost as high or low. Which of the following options is correct? If you decide to go to Florida, the opp... Paolo can walk three dogs or mow two lawns in two hours. d. transportation, parking, and entertai... Niall receives $100 as a birthday gift. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Every society faces trade-offs because we live in a world of scarcity. What is this principle called? If Frank can produce either 20 pizzas or 40 cheesecakes per day, the opportunity cost per pizza is equal to how many cheesecakes? #mc_embed_signup option { Are there other reasons for specializing in something besides being good at it or enjoying it? If you were the chief executive officer (CEO) of Johnson and Johnson, describe a situation in which you would use marginal analysis to make a business decision. The adage, "There is no such thing as a free lunch," means a. even people on welfare have to pay for food. Suppose that a farmer has land that can produce 20 bushels of corn per acre or 10 bushels of wheat per acre. Can a country "over-invest" in capital? Suppose you have three options for the last $5 in your pocket: a cappuccino you value at $6, a smoothie you value at $7, and a frog. Choose one of the items from the list. add. Which theory states that a nation should produce and sell goods that it produces most efficiently to other countries, and buy goods that are produced more efficiently by other countries? Suppose Canada can produce 1,500 tons of wheat or 500 tons of steel, and Brazil can produce 1,000 tons of wheat or 1,500 tons of steel. If Shawn can produce donuts at a lower opportunity cost than Sue, then: a. Shawn has a comparative advantage in the production of donuts, b. Suppose your management professor has been offered a corporate job with a 30 percent pay increase. The table below describes the number of cars and TVs a worker can produce (MPL) in the US and Mexico. The table below describes the number of cars and TVs a worker can produce (MPL) in the US and Mexico. They estimate that net income for the firm would increase by $75,000 annually if they worked an additional day each month. I. explicit costs II.  Students learn to distinguish opportunity costs from consequences. In Snap each worker in a one-hour period can produce either 13.72 pounds of bananas or 7.48 pounds of sugar. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B... Maureen's college raises the cost of room and board per semester. Provide an example. Mr. Lee have tickets to see Bruce Springsteen in concert at a stadium 50 miles away. 2. C. an accounting cost. John , who lives in a country with relatively low interest rates, goes to t... During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. Her opportunity cost of producing a second car per day is _____ per day. Some people choose to live close to the city center; others choose to live away from the city center and take a longer commute to work everyday. Suppose the alarm rings on a Saturday morning when you hope to go skiing with friends. Kalea quits her job, which pays $40,000 a year, to enroll in a two-year graduate program. Arcade Fire is performing on the same night and is your next-best alternative activity. did you and your partner make the same choice? Opportunity cost is the net return that could be obtained from the second best alternative that has been rejected. A normal profit is: a. revenues minus accounting and opportunity cost of zero. } Have students develop a list with two columns. Costs that were incurred in the past and cannot be changed. Post the following list of choices on the board or overhead: walk with your friend to class and arrive late to your own. 1. Direct students to work with a partner. A. a. tuition at a state university. c. If you alre... Louis Vuitton decides to invest $80,000,000 into a shoe factory in Milan from its money market account. A. The country of Purdy, with fixed resources and state of technology, can produce the following combination of hybrid cars and monster trucks. If a business owner is using the extra space at home for his business, does it imply a zero opportunity cost for the space? If Purdy is currently producing 210 cars and 175 trucks,... State true or false and justify your answer: The payments to quasi-fixed inputs should be ignored in decision making since they are not opportunity costs. C) the same as historical costs. The opportunity cost of an activity is: a) The sum of benefits from all of the sacrificed alternatives, b) The amount of money spent on the activity, c) The value of the best alternative not chosen... You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. b. the benefit gained by choosing a certain course of action. Suppose you go to University and live in a residential college on campus. He has decided to take the job. The opportunity cost of the skiing vacation is the: a. cost of buying a piano. d. opportunity knock... Because of scarcity - insufficient resources - we must always make trade-off choices that have an opportunity cost. Answer. Suppose the Navy is buying 100 new computers to replace older and slower computers across a few bases. d. revenues minus accounting cost of zero. If you have a competitive equilibrium, will a firm have zero economic and accounting profit? Directions to student pairs: Choose 3 entries from the list. Business activity combines the factors of production to produce goods and services to satisfy our needs and wants.So a business activity takes inputs (factors of productions), processes it and gives an output. B. accounting costs. $80,000 b. Assume the standard model. Which of the following, if true, would suggest that the company should concentrate on its opportunities? Opportunity cost is evident in the production possibilities frontier (PPF) graph a. as you move from one point on the frontier to another point on the frontier.

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