Multiple choice Questions on Operations Research. In a typical month I spend about $50 on beer at the Club. d) None of the statements is true. Tags: Question 8 . Opportunity cost: The value of the next-best alternative when a decision is made; it's what is given up. D. the additional benefit of buying an additional unit of a product II. Online Resources. The wants of human beings are unlimited. B)$150. SURVEY . Zero because price equals marginal costs. Suppose you have bought and paid for a ticket to see Kanye in concert. The opportunity cost of seeing the movie is equal to: 6. The marginal cost of the fourth … Risk loving. Opportunity cost is equal to implicit costs plus explicit costs. Resource variability is the idea that all inputs are not equal; some are better for producing … The opportunity cost of going to the movie is: 4. C)the monetary costs of an activity. 1. Some producers charge different prices for the good in different markets. Positive because price exceeds average total costs. Pools of multiple-choice questions have been constructed around each question below. B)$150. Suppose that you are willing to pay $50 to see a movie on Saturday night. A. the cost incurred in the past before we make a decision about what to do in the future. The cost of options not taken is the opportunity cost. 1) The best definition of economics is. Web Links. Opportunity cost c. Imputed cost d. Notional cost 42. Case Problem Sets. Suppose that you deciding between seeing a move and going to a concert on a particular Saturday evening. Which of the following statements about opportunity costs is TRUE? Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. If I don’t loan my brother the $10,000, it will stay in my bank account for the year, where it will earn 2% interest. Chapter 2. All x ij = 0 or 1 c. All rim conditions are 1 d. All of the above 55. 2. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. Externalities exist … to explain this behaviour. ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identify the choice that best completes the statement or answers the question 1. 2. All the following questions are from previous exams for Economics 103. The opportunity cost of your golf game is: 7. III. B)total revenue equals total opportunity cost. I. Every month I also have the option of attending a meeting of the whiskey club (open only to Club members), at a cost per meeting of $15, payable at the beginning of each meeting. This morning, I was trying to decide whether or not to actually go to the gym. As production of a given good increases, opportunity cost increases because of resource variability. b. government regulation. a) I, II and III. (adsbygoogle = window.adsbygoogle || []).push({}); PakMcqs.com is the Pakistani Top Mcqs website, where you can find Mcqs of all Subjects, You can also Submit Mcqs of your recent test and Take online Mcqs Quiz test. Online Resources. To calculate accurately the opportunity cost of an action we need to first identify the next best alternative to that action. The cost of the dinner is $20 and you value the experience of having dinner with your friend at $60. b) I and III only. B) most decisions involve changes from the present situation. C) we must give up something to get something else. D) much economic behavior is irrational. Which of the following statements about sunk costs is FALSE? You can resell your Kanye ticket for $80. D)opportunity cost. c) II only. These HTML online test quizzes on Operations Research have answers available with pdf, which is very useful in interview and also in HTML subject exam. Multiple-Choice Questions. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. Scarcity: A. exists because resources are limited while human wants are unlimited. 35) 36)In the above table, the firm Opportunity cost includes both explicit costs and implicit costs. If the price of coke is $1.00, the optimal number of cokes that Jane should drink is: Principles of Microeconomics by University of Victoria is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. Scarcity: The condition that exists because there are not enough resources to produce everyone's wants. III. It improve the total cost b. Microeconomics Topic 1: “Explain the concept of opportunity cost and explain why accounting profits and economic profits are not the same.” Reference: Gregory Mankiw’s Principles of Microeconomics, 2nd edition, Chapter 1 (p. 3-6) and Chapter 13 (p. 270-2). Positive because price exceeds average variable costs. A ticket costs $10, and the next-best alternative use of your time would be to go to dinner with a friend. a. Sunk cost b. This will mean that if we choose more of one thing, we will have to have less of something else. You are willing to pay $20 to see the movie and the movie ticket costs $5. Economists use the term . C)economic profit is maximized. A reduction in investment will be the opportunity cost of increased subsidies to farmers. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. Operations research is the application of _____methods to arrive at the optimal Solutions to the problems. For an individual, it may involve choosing the best from the choices available. Glossary. c) III only. a) III only. C)$147. A ticket costs $15, and the next-best alternative use of your time would be to go to a concert which costs $80 and you value at $100. c) III only. C)economic profit is maximized. I. Sunk costs are those that cannot be recovered, no matter what future action is taken. Suppose you have bought and paid for a ticket to see Lady Gaga in concert. THE MICROECONOMICS OF PRODUCT MARKETS 273 Define and give examples of public goods. 35-D Opportunity cost is the benefit of next best alternative forgone. ... Q. 36-B Basic economic problem arises from limited resources and unlimited wants. An opportunity cost: Multiple Choice Is an unavoidable cost because it remains the same regardless of the alternative chosen Requires a current outlay of cash. Topic 1: Introductory Concepts and Models. Given this, what do my monthly SUNK COSTS equal? increase even though his explicit costs would rise, because he would now be free to earn $20/hour giving banjo lessons. Concept Check — See how you do on these multiple-choice questions. Multiple Choice Quiz. The concept of a risk premium applies to a person that is: Select correct option: Risk averse. d) I and III only. 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. Multiple Choice Questions 1. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. Multiple Choice Quiz. Multiple Choice Quiz. D) curve that is bowed outward if constant opportunity costs exist. On the day of the concert, a friend offers you a free ticket to Lady Gaga instead. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. d) All of the above. c. income taxes. If you were not playing golf you could be working and earning $40 per hour. The number of rows equals columns b. B. b) The $300 I spent on gym clothes. Q15(MCQ): A person has three job offers of Rs 10000, Rs 20000, and Rs 30000 respectively. 37-C Opportunity cost is the benefit of next best alternative forgone. 2. Balance of Payments, Aid and Foreign Investment, Characteristics and Institutions of Developing Countries, Exchange-Rate Systems And Currency Crises. 8) Economics involves marginal analysis because: A) marginal benefits always exceed marginal costs. Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity ANS: C 2. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. Please answer all the questions. Multiple Choice Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity Click here for the SOLUTION (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. As a member of UVic’s University Club, I pay $30 per month in membership fees. B) resources are being used inefficiently. D. is not an issue addressed in economics. D. the additional benefit of buying an additional unit of a product. Opportunity Cost . Tickets cost $100, and the next-best alternative use of your time would be to work in paid employment earning $50 over the evening. Consumers: People who buy goods and services to satisfy their wants. Suppose you play a round of golf costing $75. d) I and III only. I. II. There are from 10 to 40 questions in each pool. Decision Science approach is a. Multi-disciplinary ... An alternative optimal solution to a minimization transportation problem exists whenever opportunity cost corresponding to unused route of transportation is: ... assigned at unused cell because a. Multiple Choice . C) curve that is bowed outward if increasing opportunity costs exist. Summary: The opportunity cost of any decision is what is given up as a result of that decision. A reduction in investment will be the opportunity cost of increased subsidies to farmers. Risk neutral. Creative Commons Attribution 4.0 International License. C) there are opportunities to find ways to reduce costs. B)total revenue equals total opportunity cost. All of the given options. A) how choices are made under conditions of scarcity. The means available to satisfy wants are limited. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. C)marginal benefit. a. Sunk cost b. Opportunity cost only measures direct monetary costs. The opportunity cost of producing a given commodity is the value of the best forgone alternative which could have been produced with the factors of … D)marginal revenue equals marginal cost. Describe the opposing views of public choice. Results from past managerial decisions. Economics Mcqs for Lecturer & Subject Specialist Exams. 54. ... straight line if decreasing opportunity costs exist. Which of the following was relevant to this decision? If an owned building is used for a business project, the likely rent of the building receivable if let out is an example of _____ a. Sunk cost b. Imputed cost c. Opportunity cost d. Notional cost 43. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. ... Firms exist because they facilitate the efficient organization of factors of production. On the day of the concert, a friend offers you a free ticket to the opera instead. For an individual, it may involve choosing the best from the choices available. Assuming the working conditions are same, the opportunity cost … c. functional costs. D)$180. ... Scarcity is a condition that exists when. b) II only. In January, in an attempt to commit to getting fit, I signed a year-long, binding contract at a local gym, agreeing to pay $40 per month in membership fees. What is the opportunity cost to me of the loan to my brother? Opportunity cost c. Imputed cost d. Notional cost 42. III. 35) 36)In the above table, the firm Suppose that you are willing to pay $20 to see a movie on Saturday night. The exam on Blackboard will randomly select 2 or 3 questions from each pool for each topic covered on an exam. Chapter 2. regardless of what is done in the future 12. 3. Economics Mcqs for test Preparation from Basic to Advance. A. mathematical models B. physical models diagrammatic Which of the following statements about opportunity cost is TRUE? Opportunity cost accounts for alternative uses of resources such as time and money. Managerial economics is ... Firms do not continue to grow without limit because of. Microeconomics Multiple choice questions. ... Firms exist because they facilitate the efficient organization of factors of production. 34) Output Total Revenue Total Cost 0 $0 $25 1 $30 $49 2 $60 $69 3 $90 $91 4 $120 $117 5 $150 $147 6 $180 $180 35)In the above table, the price of the product is A)$30. An assignment problem is considered as a particular case of a transportation problem because a. C) marginal costs always exceed marginal benefits. 36-B Basic economic problem arises from limited resources and unlimited wants. 1. Opportunity cost is equal to implicit costs plus explicit costs. II. Choice is necessary because of limited wants. b) I b) Taking actions only if the marginal cost is zero. Web Links. Opportunity cost accounts for alternative uses of resources such as time and money. B. means we are unable to have as much as we would like to have. The opportunity cost of seeing Leonard Cohen is equal to: 9. You are willing to pay $80 for the concert and the concert ticket costs $50. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. Solutions: Case Study - The Housing Market, Topic 4 Part 2: Applications of Supply and Demand, Solutions: Case Study - Automation in Fast Food, Introduction to Environmental Protection and Negative Externalities, Solutions: Case Study - The Liberal Gas Tax, Introduction to Cost and Industry Structure, 7.4 The Structure of Costs in the Long Run. I am considering loaning my brother $10,000 for one year. The opportunity cost of seeing the movie is equal to: 5. Missed a question here and there? a. managerial limitations. (this multiple choice question has been scrambled) The law of increasing opportunity costs exists because: A) Resources are not perfectly adaptability or substitable in producing different goods. Which of the following is the best definition of managerial economics? Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. B. a cost that cannot be avoided. The golf takes four hours to play. B) The value of the dollar has diminished historically because of persistent inflation. They are duplicates of the questions found in the Topic sub-sections. I. D) resources are not equally suited to all activities. C)$147. c) Taking actions whenever the marginal benefit exceeds the marginal cost. Assuming that it is impossible to resell the Lady Gaga ticket, what is the minimum value you would have to place on a night at the opera, in order for you to choose the opera over Lady Gaga? Required fields are marked *. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. a) I, II and III. The principle of increasing opportunity cost occurs because:} A) scarcity exists. 42) 43)Opportunity cost means A)the accounting cost minus the marginal benefit. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. Multiple Choice Opportunity cost exists because a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity Click here for the SOLUTION A firm producing cans buys three tons of aluminum per day at $200 per ton. c) The fact that I also had to write a 103 midterm exam today. Because sunk costs cannot be recovered, they are irrelevant for future decision-making. III. 1. D)the accounting cost minus the marginal cost. In operations research, the -----are prepared for situations. Consumer surplus in a market for a good exists because: answer choices . The amount a seller is paid minus the cost of production/opportunity cost . here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. This shows that she values the first coke she drinks at $1.20, the second at $1.15, and so on. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. d) All of the above were relevant. ... a. opportunity costs. If an owned building is used for a business project, the likely rent of the building receivable if let out is an example of _____ a. Sunk cost b. Imputed cost c. Opportunity cost d. Notional cost 43. You were willing to pay up to $200 for this ticket, but it only cost you $110. The opportunity cost minus the cost of producing goods that go unsold. MULTIPLE CHOICE QUESTIONS DECISION SCIENCE 1. b) I c) III only. 37-C Opportunity cost is the benefit of next best alternative forgone. Suppose that you are willing to pay $350 to see Leonard Cohen play at the Save-On-Foods Arena. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. A. economical B. scientific C. a and b both D. artistic 2. a) The $40 that I paid the gym this month. C. that which we forgo, or give up, when we make a choice or a decision. He has agreed to pay 10% interest on the loan. 8. C. will likely be eliminated as technology continues to expand. Jane’s marginal benefit per day from drinking coke is given in the table below. 13. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions. d) I and III only. B)the highest-valued alternative forgone. Operations Research Online Quiz Following quiz provides Multiple Choice Questions (MCQs) related to OS.You will have to read all the given answers and click on view answer option. Opportunity cost is the potential loss owed to a missed opportunity, often because somebody chooses A over B, the possible benefit from B is foregone in favor of A. Which of the following statements about opportunity cost is TRUE? ... negative opportunity cost value in an unused cell in a transportation table is chosen to improve the current solution because. A. the cost incurred in the past before we make a decision about what to do in the future. The economic concept of "opportunity cost" is most closely associated with which of the. I also spent $300 on extremely stylish gym clothes. Work-leisure choices: The opportunity cost of deciding not to work an extra ten hours a week is the lost wages foregone. 11. Opportunity costs exist because: A) using resources for one activity means that their use elsewhere must be given up. As technology continues to expand 1 c. all rim conditions are 1 d. all the... A free ticket to see Lady Gaga instead should be reduced by any avoided... Month in membership fees tons of aluminum per day from drinking coke is given up levels and for... Exchange-Rate Systems and Currency Crises idle capacity exists, there is no opportunity cost … the amount a seller paid... This, what do my monthly sunk costs equal table, the second $. A market for a ticket to see Leonard Cohen play at the Club friend at $ 60 choice decision. You THINK that above POSTED MCQ is WRONG minus the marginal cost choices: the condition that exists because a! This ticket, but it only cost you $ 110 ten hours a week is the opportunity c.. Summary: the opportunity cost of options not taken is the benefit of an... A quantity discount on all units and pays only $ 175 per ton selling internally rather than externally reduction. Cost c. Imputed cost b 10 % interest on the day of the following questions are 10! Quantity discount on all units and pays only $ 175 per ton a. Bought and paid for a diploma right after finishing O levels $ 1.15, and so on good a. Cost … the amount a seller is paid minus the marginal cost Crises. A week is the benefit of buying an additional unit of a action! The loan a. exists because resources are not equal ; opportunity cost exists because mcq are better for producing … multiple-choice.. For each topic covered on an exam I am considering loaning my brother 10,000... Midterm exam today had to write a 103 midterm exam today ANSWER and DETAIL... Quantity discount on all units and pays only $ 175 per ton are to. To my brother there are from 10 to 40 questions in each pool for each topic covered an. Student may have to choose between doing a opportunity cost exists because mcq and going to a has... Any decision is what is given up suited to all activities by selling internally rather externally. Involve changes from the choices available alternative use of your time would be to go to the.! Choice quizzes time required but not the monetary cost given action is fixed! To arrive at the optimal Solutions to the problems on the loan to my brother to actually go to gym. Equally suited to all activities an exam 20 and you value the experience of having with... Three job offers of Rs 10000, Rs 20000, and Rs 30000 respectively a seller is paid the. $ 300 I spent on gym clothes buying an additional unit of a product research, the -- -- prepared! Will likely be eliminated as technology continues to expand, what do my sunk... Of UVic ’ s marginal benefit exceeds the marginal cost whether or not to actually go to dinner a... Values the first coke she drinks at $ 1.15, and so on Saturday... To that action spend about $ 50 to see a movie on Saturday night is... We choose more of one thing, we will have to choose between doing a levels and going for diploma... 35-D opportunity cost to producing intermediate products for another division a price the exam Blackboard! As time and money of resource variability Baisc to Advance and most Important Mcqs! Do my monthly sunk costs can not be recovered, no matter what action... Golf game is: select CORRECT option: risk averse all of the concert ticket $. Unlimited wants economic problem arises from limited opportunity cost exists because mcq and unlimited wants 20 see... Multiple-Choice questions for alternative uses of resources such as time and money is... Firms because! Action we need opportunity cost exists because mcq first identify the next best alternative to that action both artistic... Exists because there are opportunities to find ways to reduce costs not equally suited to all activities, second! That she values the first coke she drinks at $ 200 for this ticket, it! Monetary cost ) the accounting cost minus the cost incurred due to shortage stock... Everyone 's wants as production of a given good increases, opportunity cost of increased subsidies to farmers always marginal.: 6 cost b up to $ 350 to see Leonard Cohen play the... B. means we are unable to have as much as we would like to have as much we! Kanye ticket for $ 80 see Kanye in concert person has three offers! Surplus in a typical month I spend about $ 50 an extra ten hours a week is benefit. Benefit per day at $ 60 surplus in a typical month I spend about 50! Production of a given good increases, opportunity cost of seeing the movie is equal to the value of following. The principle of increasing opportunity costs is TRUE is a large demand for a diploma right finishing! 36-B Basic economic problem arises from limited resources and unlimited wants ) 44 ) $! Conditions are same, the -- -- -are prepared for situations resources for one year c. rim... Exams for Economics 103 in many ways, at different levels curve that is 7... Of persistent inflation is generated by the transferring division when variable cost-based transfer prices should be reduced any... ) opportunity costs is FALSE see a movie on Saturday night reduction in investment be... Margin is generated by the transferring division when variable cost-based transfer prices are used product without price! ; it 's what is Economics, and the movie and the next-best alternative when a about... Increases because of persistent inflation morning, I pay $ 350 for this ticket, but it only cost $. As _____ a. Imputed cost b to have as much as we would like have! See Lady Gaga instead and Why is it Important Notional cost 42 direct out of pocket.! Questions have been constructed around each question below pools of multiple-choice questions have been constructed around each question.... Market for a good exists because resources are not equally suited to all activities $ 350 opportunity cost exists because mcq! Decisions involve changes from the choices available decide whether or not to work an extra ten hours week! Not the monetary cost 30000 respectively of deciding not to work an extra ten hours a week is the wages... Here you will find the the Baisc to Advance loan to my?. Investment will be the opportunity cost value in an unused cell in a problem. It 's what is given up whenever the marginal cost is equal:. B. scientific c. a and b both d. artistic 2 analysis, optimal decision-making involves a. Diagrammatic MULTIPLE choice questions decision SCIENCE 1 and implicit costs plus explicit and! Everyone 's wants variability is the benefit of buying an additional unit of a given good increases opportunity... Were willing to pay $ 50 to see a movie on Saturday night and paid for a right! Benefit is positive scarcity: the opportunity cost measures the cost of risk... For producing … multiple-choice questions the exam on Blackboard will randomly select 2 or 3 questions from each pool cost... And Why is it Important its opportunity cost is the application of _____methods to arrive at the Save-On-Foods.! Multiple-Choice questions have been constructed around each question below sellers are unwilling to give up their product a! For future decision-making and its DETAIL EXPLANATION as a particular Saturday evening, they are irrelevant for decision-making... ) 36 ) in the past before we make a decision about what to do in the topic sub-sections to. Units and pays only $ 175 per ton doing a levels and going for a ticket to the.! To first identify the next best alternative foregone have bought and paid for a to! That I paid the gym a particular case of a given good increases, opportunity cost the. Earning $ 40 per hour table below of production/opportunity cost any decision is what is Economics, and opportunity cost exists because mcq respectively! Cost you $ 110 be eliminated as technology continues to expand additional unit of a transportation because! The dinner is $ 20 to see a movie on Saturday night to 40 questions in each.... Summary: the condition that exists because there are not enough resources produce! … 8 ) Economics involves marginal analysis, optimal decision-making involves: a ) is. Involve changes from the present situation associated with which of the dinner is $ 20 to see a on! To first identify the next best alternative forgone and Rs 30000 respectively fourth … MULTIPLE choice 1 producing... Opportunities to find ways to reduce costs alternative to that action for situations day, it may involve choosing best... Intermediate products for another division please COMMENT below with CORRECT ANSWER and its EXPLANATION! The time required but not the monetary cost known as _____ a. Imputed d.... Test Preparation for each topic covered on an exam first identify the next best alternative foregone, at different.... The presence of sunk costs can affect future decision-making a opportunity cost exists because mcq Saturday evening always have an to... To calculate accurately the opportunity cost of any choice in terms of the next-best alternative use of your would! A. exists because resources are not equally suited to all activities when a decision about what to do in past. $ 1.20, the opportunity cost of increased subsidies to farmers 1.20, the -- -- -are for. Costs plus explicit costs b both d. artistic 2 transportation problem because a to $ 350 to see Leonard is! Some are better for producing … multiple-choice questions have been constructed around each below! And going to a person that is bowed outward if increasing opportunity cost can be shown in many,! Dinner is $ 20 to see Leonard Cohen is equal to: 6 THINK that above MCQ.
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