25 Questions
What is the opportunity cost of something?
What you sacrifice to get it
Who does the principle of opportunity cost apply to?
All decision-makers
What is the principle that states the cost of something is equal to what is sacrificed to get it?
Principle of opportunity cost
What does the saying 'There's no such thing as a free lunch' refer to?
Principle of opportunity cost
What is Jacinda's opportunity cost of running her business?
$57,000 per year
What is NOT considered as the opportunity cost of something?
The price charged for it
Who does the principle of opportunity cost apply to more?
Neither, it applies equally to both
What is the principle of opportunity cost primarily concerned with?
Economic decision-making
Which one of these is the opportunity cost of using the hour between economics and math classes to complete math homework instead of economics homework?
The economics homework you could have completed
What do the sacrifices made by societies in order to engage in military spending represent?
The opportunity costs of military spending
What do the trade-offs made by the U.S. government to fund the war in Iraq represent?
What was potentially sacrificed to engage in the war
What policy question should be considered in Malaysia, according to the possible trade-off example between warships and drinking water in the text?
Do the benefits of the warships exceed their opportunity costs
What is the opportunity cost of grooming the first dog in a day, according to Table 2.1?
2
What is the opportunity cost of grooming the third dog in a day, according to Table 2.1?
4
What does the term 'opportunity cost' refer to?
The value of the next best alternative that is foregone when a choice is made
What does the term 'trade-off' represent?
The alternatives that are given up when a choice is made
What is the main focus of the concept of opportunity cost?
The value of the next best alternative that is foregone when a choice is made
Which one of these is the opportunity cost of fishing?
The cost of bait, any other monetary expenses, and the value of the best alternative use of the individual's time.
What is the opportunity cost of living in a house you own?
The opportunity cost is the rent you could have received from a tenant if you didn't live there.
What is the opportunity cost of using a parking spot in a big city with a shortage of parking?
The opportunity cost of using the spot is the price that could be charged to someone else for using the spot.
What is the opportunity cost of watching a movie a second time instead of going to a football game?
The football game you forego by watching the movie again.
What is the opportunity cost of a seven-year-old dressing up like Princess Fiona for Halloween?
The fact that she can't dress up like Dora the Explorer, her second choice.
What is an example of the incursion of an opportunity cost?
Spending money on a new car instead of a used car when you are on a fixed budget.
What is the opportunity cost of attending college for one year if your tuition is $24,000, room and board is $8,000, and you could earn $30,000 per year working full time?
$54,000
What is the opportunity cost of attending college if your tuition is $14,000 per year, room and board is $5,000 per year, and you could earn $26,000 per year working full time?
$40,000
Test your understanding of the key principles of economics with this quiz on Chapter 2 of "Survey of Economics, 5e (O'Sullivan et al.)". Learn about the principle of opportunity cost and its significance in decision-making. Identify the true definition of opportunity cost and its relationship to sacrifice.
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