View Managing Answer.pdf from MARKETING 01B at Texas A&M University, –Commerce. 2016/2017 ... it may lose an export opportunity to a competitor that is willing to make a countertrade agreement. II. The opportunity cost of the CD is the lunches given up. Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. Export steel b. Answer: No. A)the question "what." B)money C)giving up something for nothing. endobj ÉP¦Í%9ÿ€òãÓÛÃÓ>dYY²k7òÌ�gëÔ°Vğ�"…¥^jê)&bL#[9Š*`‡Ğ÷$�šNõrï…ˆ?#-£rõY±7ÌRg>s¥ø(‡ãÌÄEô³ê„!Ç•wã@¥NÙŞ73û ¡©�É®’YM¼Á®_`+¥jmöîbİÕ›¬'aäŠla½ä…ò. If Athletic Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional 100 bats? Opportunity Cost Assume that you would engage in all of the following activities. Answer: In both, the opportunity cost of 1 car is 5 computers. Though, opportunity cost is just one of these topics and you will mostly likely to have only 1 or even 0 questions in your exam, it is indeed an important concept in the real world project management world to help you select the best course of actions to achieve the best value return. It is important to learn to make good economic choices, or decisions. /SA true I. d. Are there any gains to be made from trade? Answer the following questions: a. In both, the opportunity cost of 1 computer is 1/5 of a car. Opportunity Cost Calculation in Excel. Production Possibilities Curve as a model of a country's economy. /SM 0.02 c. As you make this decision, what is the opportunity cost of each poster made? What theoretical pedagogy can't drive in, practical examples do! 1. Other relevant costs include the one-time delivery/ packing cost of $2,000 and the (opportunity) cost of lost … D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. Therefore, neither has a comparative advantage in either good. This question polarised performance with a significant number ignoring the ‘marginal’ content of the question, many calculated the opportunity cost cumulatively in … Which of the following statements about opportunity cost is TRUE? /BitsPerComponent 8 D) upward-sloping because the opportunity cost of holding money rises with the interest rate. Opportunity cost only measures direct monetary costs. Answer: Opportunity cost refers to foregone earning in economics. (�f�y�$ ����؍v��3����S}B�2E�����َ_>������.S, �'��5ܠo���������}��ز�y���������� ����Ǻ�G���l�a���|��-�/ ����B����QR3��)���H&�ƃ�s��.��_�l�&bS�#/�/^��� �|a����ܚ�����TR��,54�Oj��аS��N- �\�\����GRX�����G�����‡�r]=��i$ 溻w����ZM[�X�H�J_i��!TaOi�0��W��06E��rc 7|U%���b~8zJ��7�T ���v�������K������OŻ|I�NO:�"���gI]��̇�*^��� @�-�5m>l~=U4!�fO�ﵽ�w賔��ٛ�/�?�L���'W��ӣ�_��Ln�eU�HER `�����p�WL�=�k}m���������=���w�s����]�֨�]. Every time someone makes a choice, there are other things that are not chosen. B)opportunity cost. I. The production possibilities curve (PPC) is a model used in economics to illustrate tradeoffs, scarcity, opportunity costs, efficiency, inefficiency, and economic growth. Next lesson. 40 Multiple Choice questions @ 1.5 marks each. Note for students the importance of making financial decisions to spend or save consistent with one’s values, and of always considering the opportunity cost of spending choices as a way to make an informed decision. (c) Higher is the production of good 2 greater is the opportunity cost of reducing its production. This will entail an increase in inventory of $8000, an increase in accounts payables of $2500, and an … D.Cost of production. If you make it through the mechanics of computing cost of capital, you will see it described as an opportunity cost, a discount rate and a hurdle rate for investments and it is all of the above The opportunity cost of one DVD in South Korea is: a. Base your answer only on the information above and on comparative-advantage considerations. /Filter /FlateDecode Have a go! Opportunity Cost. (c) A clear, well written answer which makes a good contrast between how resources are allocated in market and mixed economic systems. This is a Sample PDF of our Managerial and Cost Accounting Exam You can view the entire Exam (81 pages containing 520 questions plus answers) when you join AccountingCoach PRO. (a) The opportunity cost of moving from point b to c is 10 units of butter. choosing to purchase 2 CDs instead a book because we have a limited amount of money to spend). PDF (196.08 KB) ... choice, opportunity cost and resources. /ColorSpace /DeviceRGB These questions are from Chapter 1 Section 2. ECON216 Tutorial 2 Questions and Answers 1. a) What is the reason for increasing opportunity costs? Opportunity cost is one of the key concepts in the study of economics Economics CFI's Economics Articles are designed as self-study guides to learn economics at your own pace. Try this amazing Chapter 1 Section 2 Quiz (Opportunity Cost) quiz which has been attempted 2232 times by avid quiz takers. There are also questions about what tax rate, the effective or the marginal, to use in the assessment to best capture the tilt in the tax code towards debt. Lesson summary: Opportunity cost and the PPC. /Width 625 b. Finally, choose your next best option in order to determine the opportunity cost for you for each activity. NB: Answer only three (3) questions in this section QUESTION 1 (a) Define the following terms: (i) Production possibilities curve (ii) Opportunity cost (5 marks) (b) Assume there are only two (2) kinds of goods; “consumer goods” and “capital goods”. Present value intra-year discounting. [/Pattern /DeviceRGB] The opportunity cost of producing 80m capital goods. It is the cost of given up... Read More. University. 1 0 obj 2017/2018 only relevant variable costs are the $15 variable manufacturing cost ($15 × 5,000 = $75,000 total), since marketing costs are not charged for the special order. /Title (�� P p f a n d o p p o r t u n i t y c o s t q u e s t i o n s a n d a n s w e r s) In Exhibit 2, plot and connect these points to create Athletic Country's production possibilities frontier. Study Questions (with Answers) Page 4 of 6 (8) 10. A.Budgeting. B)money C)giving up something for nothing. 5) If technology advances, then: With the largest library of standards-aligned and fully explained questions in the world, Albert is the leader in Advanced Placement®. Exercises 1.2. ~��-����J�Eu�*=�Q6�(�2�]ҜSz�����K��u7�z�L#f+��y�W$ �F����a���X6�ٸ�7~ˏ 4��F�k�o��M��W���(ů_?�)w�_�>�U�z�j���J�^�6��k2�R[�rX�T �%u�4r�����m��8���6^��1�����*�}���\����ź㏽�x��_E��E�������O�jN�����X�����{KCR �o4g�Z�}���WZ����p@��~��T�T�%}��P6^q��]���g�,��#�Yq|y�"4";4"'4"�g���X������k��h�����l_�l�n�T ��5�����]Qۼ7�9�`o���S_I}9㑈�+"��""cyĩЈ,��e�yl������)�d��Ta���^���{�z�ℤ �=bU��驾Ҹ��vKZߛ�X�=�JR��2Y~|y��#�K���]S�پ���à�f��*m��6�?0:b��LV�T �w�,J�������]'Z�N�v��GR�'u���a��O.�'uIX���W�R��;�?�6��%�v�]�g��������9��� �,(aC�Wn���>:ud*ST�Yj�3��ԟ��� MCQ quiz on Microeconomics multiple choice questions and answers on Microeconomics MCQ questions on Microeconomics objectives questions with answer test pdf for interview preparations, freshers jobs and competitive exams. College Entrance Practice with confidence for the ACT® and SAT® knowing Albert has questions aligned to all of the most recent concepts and standards. 4 0 obj 7) Nav. With the aid … B usiness opportunities C. P roduct D. T echnology ANSWER: B 28 .Which of the following is the back bone of financial plan? (A) rows or coloumns (B) rows and coloumns (C) rows+columns- 1 (D) rows-columns Units produced per hour Burgers Pizzas Bob 30 5 Frank 16 4 1. Plus Two Economics Introduction Microeconomics One Mark Questions and Answers. Concordia University. Input costs that may not have a direct outlay of money. A)the question "what." It applies to both the supply side of the market (production) and the demand side of the market (consumption). Clyde Prestowitz, in his assigned reading, cites a study that measures various costs of US trade with China. (4/4) (d) A well-structured answer which makes good use of relevant economic theory and concepts including opportunity cost and productivity in considering both the advantages and disadvantages of an increase C) downward-sloping because the opportunity cost of holding money rises as the interest rate falls. 1 2 . Since it is always better to be prepared for anything, these sites will direct you to some tried-and-tested exam questions. (2 marks for each good quality definition) 2 1. lucas tonton. /AIS false C)accounting cost. >> Angela is a college student. An opportunity cost of going to college would be the four years of potential foregone earnings that could have been earned in the labor market, had the decision to go to college not been made. Answer 1. a. 80 60 50 ... structured question to answer in an examination, it is important to ensure that you can answer all the question parts. Base your answer only on the information above and on comparative-advantage considerations. Students will practice note taking with a graphic organizer, answer questions and solve a riddle! Opportunity cost is also referred to as alternative cost. C. the opportunity cost of producing 400 guns instead of 100 guns is 600 units of bread. << Which of the following statements about opportunity cost is TRUE? Practical question (Chapter 1 to 5) University. x����_w��q����h���zΞ=u۪@/����t-�崮gw�=�����RK�Rl�¶Z����@�(� �E @�B.�����|�0�L� ��~>��>�L&C}��;3���lV�U���t:�V{ |�\R4)�P�����ݻw鋑�������: ���JeU��������F��8 �D��hR:YU)�v��&����) ��P:YU)�4Q��t�5�v�� `���RF)�4Qe�#a� A company's cost of capital is the cost of its long-term sources of funds: debt, preferred equity, and common equity. Quiz 1 – Production Possibilities & Opportunity Costs Version 1 - Yellow Instructions: Answer each of the six questions. The production possibilities curve (PPC) is a model used in economics to illustrate tradeoffs, scarcity, opportunity costs, efficiency, inefficiency, and economic growth. Browse from thousands of Economics questions and answers (Q&A). This question does precisely that! Print your name and student number clearly on the answer sheet. /Creator (�� w k h t m l t o p d f 0 . The opportunity cost of the new design of the product will be the increased cost and its inability to compete on price. Here are some interesting opportunity cost examples that would definitely strengthen your grip on this simple yet rational economic concept! endobj Course. Academic year. 3. 6. What is the present value of $1,000 received in two years if the … The opportunity cost of reading a book A) depends on how much the book cost when it was purchased. Also explore over 4 similar quizzes in this category. 8 . This is very simple. Try this amazing Chapter 1 Section 2 Quiz (Opportunity Cost) quiz which has been attempted 2232 times by avid quiz takers. The DVD represents the opportunity cost. � �l%��Ž��� �W��H* �=BR d�J:::�� �$ @H* �,�T Y � �@R d�� �I �� What is Bob’s opportunity cost of producing 1 pizza? Value of the opportunity cost. Fill in the bubbles corresponding to your student number, leaving the last two boxes blank. The opportunity cost of the new design of the product will be the increased cost and its inability to compete on price. Q. Which of the following is not one of those costs? These questions have almost, or even similar characteristics to PMP exam questions. Students will practice note taking with a graphic organizer, answer questions and solve a riddle! a. Sunk cost b. a. d. Let us now do the same Opportunity Cost example in Excel. e. PPCs for increasing, decreasing and constant opportunity cost. opportunity cost—choosing to do one thing prevents us from having the opportunity to do another. D)substitution cost. Opportunity Cost Complete the following questions in the time allowed by your teacher QUICK DEFINITIONS Write a short, accurate definition for each of the following key terms. They are duplicates of the questions found in the Topic sub-sections. Opportunity cost accounts for alternative uses of resources such as time and money. /CA 1.0 The opportunity cost of increasing the output of consumer goods from 60m to 90m consumer goods. • A city government has $20,000 to Mock tests should also give you a feel of the actual exam before you sit for it. Graham Dawson, who has taught economics at Bedford High School for twelve years, gives a model answer to a question that could be found in any‘A’Level examination. We provide all important questions and answers from chapter Business Economics. Also explore over 4 similar quizzes in this category. stream The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. (b) A movement from ‘f’ to ‘b’ has an opportunity cost. Opportunity cost is equal to implicit costs plus explicit costs. Define: opportunity cost Answer The benefit foregone of the best alternative - which is sacrificed when making a decision. Opportunity cost only measures direct monetary costs. A. the opportunity cost of producing 200 guns instead of 100 guns is 750 units of bread. B.Capital. Then consider what else you could be doing with your time or money if you decided not to engage in those activities. 3 0 obj The diagram shows: (a) A movement from ‘a’ to ‘b’ has no opportunity cost. In both, the opportunity cost of 1 computer is 1/5 of a car. Question 18: An optimal assignment requires that the maximum number of lines which can be drawn through squares with zero opportunity cost be equal to the number of _____. The last option is the most attractive, so Cliff should be the first who is assigned to do the posters. 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