Opportunity Cost Quiz

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Opportunity cost is defined as

The allocation of resources in decision making

The scarcity of resources in decision making

The loss of the next best alternative when making a decision (correct)

The competing wants and needs in decision making

Scarcity refers to

Limited resources (correct)

Allocation of resources

Competing wants and needs

Opportunity cost

When making a decision, opportunity cost is incurred because

Choices have to be made about how to allocate limited resources (correct)

The decision maker is unaware of other options

There are competing wants and needs

The next best alternative is always better

The opportunity cost of purchasing a new phone instead of new jeans is

The loss of the next best alternative, which is new jeans Signup and view all the answers

The opportunity cost of allocating all resources to producing electric vehicles instead of petrol vehicles is

The loss of the next best alternative, which is petrol vehicles Signup and view all the answers

The opportunity cost of providing free school meals to all primary students instead of funding rural libraries is

The loss of the next best alternative, which is rural libraries Signup and view all the answers

Opportunity cost arises due to

Scarcity of resources Signup and view all the answers

The concept of opportunity cost is applicable to

All of the above Signup and view all the answers

When making a decision, opportunity cost is the

Loss of the next best alternative Signup and view all the answers

Opportunity cost is incurred when a decision maker

Chooses one option over another Signup and view all the answers

Opportunity cost is best defined as:

The loss of the next best alternative Signup and view all the answers

Which of the following is an example of considering opportunity cost?

Choosing a flight with a lower price Signup and view all the answers

Ric values his free time at £20 per hour. If he can save 4 hours a week by working from home, how much is that worth to him monthly?

£320 Signup and view all the answers

Why does the firm selling organic avocados decide not to accept the supply contract from the large supermarket?

The supermarket is a prestigious customer Signup and view all the answers

Which one of the following is NOT a factor that may change decisions when opportunity cost is factored in?

Government preferences Signup and view all the answers

What is the opportunity cost of choosing a flight that costs £120 instead of £50?

£130 Signup and view all the answers

Opportunity Cost Quiz

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Questions and Answers

Opportunity cost is defined as

Scarcity refers to

When making a decision, opportunity cost is incurred because

The opportunity cost of purchasing a new phone instead of new jeans is

The opportunity cost of allocating all resources to producing electric vehicles instead of petrol vehicles is

The opportunity cost of providing free school meals to all primary students instead of funding rural libraries is

Opportunity cost arises due to

The concept of opportunity cost is applicable to

When making a decision, opportunity cost is the

Opportunity cost is incurred when a decision maker

Opportunity cost is best defined as:

Which of the following is an example of considering opportunity cost?

Ric values his free time at £20 per hour. If he can save 4 hours a week by working from home, how much is that worth to him monthly?

Why does the firm selling organic avocados decide not to accept the supply contract from the large supermarket?

Which one of the following is NOT a factor that may change decisions when opportunity cost is factored in?

What is the opportunity cost of choosing a flight that costs £120 instead of £50?

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