The following TWO questions refer to the PPF diagram below. The opportunity cost of producing more x is zero. This cost is not only financial, but also in time, effort, and utility. (b) what you give up to get that item. ANSWERS: ECONOMICS MCQ 6. (A) opportunity cost 10. (A) opportunity cost (B) purchasing power parity (C) disposable income (D) consumer price index. The marginal cost of 11 th unit is: (a) Rs 20 (b) Rs 30 (c) Rs 40 (d) Rs 50. Since people must choose, they inevitably face trade-offs in which they have to give up things they desire to get other things they desire more. (d) Cost Centres, Profit Centres and Investment Centres . net benefit foregone from the best alternative use of the capacity required. If total cost at 10 units is Rs 600 and Rs 640 for 11th unit. The ordering cost, i.e., the cost of placing an order plus the cost of the bicycles be-ing purchased, has two components: The administrative cost involved in placing an or-der is estimated as $200, and the actual cost of each bicycle is $35 for this wholesaler. b) I and II only. Products that have an opportunity cost 6. (C) land, labor, and capital 7. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. rows+columns- 1; rows-columns. fixed manufacturing cost of the component. The opportunity cost of an item is (a) the number of hours needed to earn money to buy the item. Ο Is Irrelevant In decision making because it occurred in the past. a) III only. The opportunity cost of producing more y is zero. answer choices . The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative. An optimal assignment requires that the maximum number of lines which can be drawn through squares with zero opportunity cost should be equal to the number of _____. View answer An opportunity cost Multiple Choice Ο is an unavoidable cost because it remains the same regardless of the alternative chosen. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. The opportunity cost of making a component part in a factory with no excess capacity is the: (CMA adapted) total manufacturing cost of the component. (C) Gini 9. I. 8. d) I, II, and III. It’s necessary to consider two or more potential options and the benefits of each. 10. The central role of markets is to determine the (A) quality of goods (B) quantity of goods (C) level of income (D) price of goods. 10. Ο Is the potential benefit lost by choosing a specific alternative course of action among two or more. The opportunity cost of producing an additional unit of product A is. What is the MARGINAL cost … rows or columns; rows and columns. (B) capital 8. Ο Requires a current outlay of cash. III. II. Economic cost excludes: (a) Accounting cost + explicit cost (b) Accounting cost + implicit cost (c) Explicit cost + Implicit cost (d) Accounting cost + opportunity cost. Which item used in the production of textiles by a firm would an economist Q.4. Labour immobility f. Products that do not have an opportunity cost 7. 9. variable manufacturing cost of the component. all of the human and capital resources used to produce product A. the retail price paid for product A. the amount of product B that cannot now be produced because of product A. … Opportunity cost is the cost of taking one decision over another. 2. 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