's' : ''}}. III. b) I c) III only. 2017/2018 214 High Street, C. the income which could have been earned by a college student had he or she worked full time instead of attending college. The opportunity cost of an action is (A) the monetary payment the action required. Mock tests should also give you a feel of the actual exam before you sit for it. For the exam opportunity cost is usually a monetary value. You will receive your score and answers at the end. B. the tuition fees paid to a university. B)opportunity cost. Dayne Lee. You are here Home » Forums » PMP Exam Preparation Forum » General Discussion » Questions on Opportunity Cost. 137 lessons As output increases, average fixed cost: (a) Remains constant Enrich your understanding of opportunity cost and its calculation with the help of our quiz. Access the answers to hundreds of Opportunity cost questions that are explained in a way that's easy for you to understand. English, science, history, and more. Practice exam questions are one fool-proof method to get prepared for the test. B)opportunity cost. We may find a few questions on the PMP®certification exam based on this topic. 42) (B) the total time spent by all parties in carrying out the action. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. There is no calculation required. HOMEWORK Reading and MC questions. Exam Question # Q.4. Investing. Handout: Practice with Opportunity Cost. Test Your ICT Vocabulary; ICT Worksheets; Frequently Asked Questions - opportunity cost. The opportunity cost of additional 20,000 gallons of milk is 1,000 cars. Visual 2: Discussion Questions: Choosing a Snack. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. Opportunity Costs can be great tools for project selection in an organization. Unfortunately, his favorite TV program is on right now. 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. Johnson waits two hours in line to buy a ticket to an NCAA Final Four Tournament game. Answer: Because Angela’s productivity in pot and mug production is constant – it doesn’t depend on how many mugs or pots she is making. 2) Hook 3) Students go over the AIMS The Economics Balloon Debate - a starter activity for an introductory Economics class, Supply side economics - how to shift the PPF, Economic Foundations quiz - use this with new Economics students, The Opportunity Cost of a pair of Apple AirPods, NHS Treatment Price Tags - An Exercise for Students, Opportunity Cost - Some Numerical Examples as a Worksheet, A* Exam Technique: Evaluating impact of a higher minimum wage, A* Exam Technique: Evaluating government borrowing to promote development, Development economics - new essays for practice, Development Economics Essay Plan: Savings and Growth, EU Customs Union Membership (Revision Essay Plan), The (Synoptic) Edge in Economics: Macro Calculation Questions, The (Synoptic) Edge in Economics: Micro Calculation Questions, The (Synoptic) Edge in Economics Revision: Test 2 - Macro, The (Synoptic) Edge in Economics Revision: Test 1 - Micro, African Free Trade Agreement (Chain of Analysis), Edexcel A-Level Economics Study Companion for Theme 1, AQA A-Level Economics Study Companion - Microeconomics, Advertise your teaching jobs with tutor2u. [3 marks] Definition must include the following: the (next) best alternative foregone/not taken as a result of taking a … Identify opportunity cost and justify a choice Visual Anchor. Let us take a look at a few sample questions based on this concept. 2. e. The synthetic production of Bovine Growth Hormone (BGH) allows dairy farmers to get twice as much milk from each cow. A firm producing cans buys three tons of aluminum per day at $200 per ton. (D) the cost of … Swinburne University of Technology. West Yorkshire, flashcard sets, {{courseNav.course.topics.length}} chapters | Materials. Business Strategy. Related Studylists. 1. | {{course.flashcardSetCount}} (1 per student) Handout: Practice with opportunity cost analysis (1 per student) Overhead transparencies or power points slides: Visual 1: Characteristics of Cost. Multiple Choice 1. Practice Questions to accompany Mankiw & Taylor: Economics 2 d. Why is her production possibilities frontier a straight line instead of bowed out like those presented in Chapter 2? Johnson’s best alternative use of the $200. PMP Exam Questions; PMP books; Search form. (C) the value of the opportunity or opportunities that must be sacrificed in order to take the action. If he studies for the test, he will miss watching the show. Abilities vs Abilities The opportunity cost of after school violin lessons at a particular school is the ability to join other after school activities such as baseball or the chess club. By giving up on the opportunity to sell his USD 10,000 worth stocks in future for a price higher than USD 15,000, he is incurring an opportunity cost, the value of which would be decided 3 months later. (B) $175. 29. Opportunity cost examples can also be looked from the point of view of a tradeoff as well between the choices foregone for the choice availed. Some of them merely … If the marginal cost first falls and then rises, it will be equal to the average variable cost at a point where the average variable cost is the minimum. Opportunity Cost: How much do I cost the NHS? LS23 6AD, Tel: +44 0844 800 0085 II. You will need to calculate the opportunity cost for a particular path. A mock exam question on opportunity cost: You are the working in the PMO of your organization and there are three project proposals submitted. FAQs - opportunity cost Define the concept of opportunity cost. I. (C) $700. All rights reserved. To solve the practice problems, you will need to know these details about opportunity cost: The quiz will require you to practice these skills: Complete the quiz and head over to the related lesson, How to Calculate Opportunity Cost. What is the opportunity cost of his decision? B)money C)giving up something for nothing. Boston Spa, Sample Question 1 You work in the PMO of a mid-sized company. Opportunity cost is defined as the 'value of the best alternative that is foregone when a particular course of action is undertaken'. Since it is always better to be prepared for anything, these sites will direct you to some tried-and-tested exam questions. The opportunity cost of the new product design is increased cost and inability to compete on price. Which of the following is a macroeconomic question? All students preparing to sit A-Level Economics exams in summer 2021. This question does precisely that! Much cheaper & more effective than TES or the Guardian. 32. Opportunity cost only measures direct monetary costs. EXIT SLIP . Enrolling in a course lets you earn progress by passing quizzes and exams. Given that there will only be an opportunity cost if the seller does not have any spare capacity, the first question to ask is therefore: does the seller have spare capacity? 9. Answers to Economics Quiz Questions are available at the end of the last question. In terms of this production possibility frontier, this means that this economy can now produce twice as much milk at each level of car output. Econ 342: Practice Questions for Exam 1 I. What is the difference between the planned economy and market economy? Project A with Net Present value (NPV) of . Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. They are Project Diamond with an NPV of Rs.15,00,000, Project Gold with an NPV of Rs 17,00,000 and Project … B)scarcity. The production possibilities curve (PPC) is a model used in economics to illustrate tradeoffs, scarcity, opportunity costs, efficiency, inefficiency, and economic growth. Questions on Opportunity Cost. All of the following are examples of opportunity cost except: A. the leisure time sacrificed to study for an exam. Search . Exam 2018, questions and answers. TAGS: opportunity cost, scarcity. If the job market is bad, your net income will be lower if you get a job, which lowers the opporunity cost Questions and answers on opportunity cost. © copyright 2003-2020 Study.com. You have to select between four projects. C. the opportunity cost of producing 400 guns instead of 100 guns is 600 units of bread. a) I, II and III. All the following questions are from previous exams for Economics 103. Read chapter 1.3 of the textbook, here:… Both concerts cost $150 per ticket, but it would take you a couple of hours to drive to Hot Stuff’s concert and you have to be in school (the next) morning for an exam. The opportunity cost of attending a class of 2 hours is probably giving up $30 dollars of working if you make a $15 per hour. Favorite Answer Questions and answers on opportunity cost. Let’s explain the same with the help of an example: Costa Rica a developing nation holds a National debt of $3000 billion and requires paying an interest bill on the national debt that amounts to$340 billion annually. If you're seeing this message, it means we're having trouble loading external resources on our website. 3 Question 2 (using above diagram) Question 3 (using above diagram) 4 Question 4 Question 5 The diagram refers to production possibility frontiers for a country that produces capital goods and consumer goods. This would be added to her other explicit costs of doing business to compute the opportunity cost. Boston House, If your tuition is $20,000 this semester, your books cost $2,000, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $8,000 this semester, then your opportunity cost of attending college this semester is Course. … Practice with Opportunity Cost Analysis. C)accounting cost. What are the types of Postponable Costs: Ans. Vocab . Solution for The opportunity cost of writing 1 exam paper for Gary and Evelyn is: (Need help? If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. Practice exam questions PPF and Increasing Opportunity Cost (MCQ Revision Questions) Levels: AS, A Level, IB Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC Economics Quiz Questions Test contains 10 questions. As a member, you'll also get unlimited access to over 83,000 lessons in math, Country A up to 1/2 ton then it is Country B, Writing one report and forgoing 2 computer programs, Writing one report and forgoing 3 computer programs, Writing one report and forgoing 4 computer programs, Writing one report and forgoing 5 computer programs. 4. Get help with your Opportunity cost homework. This quiz is a series of math problems and will present you with a variety of situations about individuals or groups facing two choices. Try this amazing Trade Offs Opportunity Cost Quiz quiz which has been attempted 273 times by avid quiz takers. D)substitution cost. III. 41) 42)The loss of the highest-valued alternative defines the concept of A)entrepreneurship. If the rate of return on her best alternative investment opportunity is 10%, the implicit cost of capital is $10,000. Q. Max is studying for his spelling test. 1) Quick Questions Matching: earn, spending, income, savings, budget. Which of the following statements about opportunity cost is TRUE? Opportunity cost is: (a) Direct cost (b) Total cost (c) Accounting cost (d) Cost of foregone opportunity. They are duplicates of the questions found in the Topic sub-sections. Opportunity cost is equal to implicit costs plus explicit costs. All other trademarks and copyrights are the property of their respective owners. Overview: Opportunity Cost: Type : Decision Making. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas. A. the opportunity cost of producing 200 guns instead of 100 guns is 750 units of bread. The lesson covers the following objectives: 16 chapters | (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. 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. The marginal cost of the fourth ton per day is (A) $100. Academic year. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. ... What is the opportunity cost of taking an exam? Nothing mattered unless your needs were satisfied, C_ARP2P_19Q4 Test Certification Cost the Captain's voice sounded from behind a desk, The earth is always fresh and young, full of opportunity to the man who has Exam 1z0-983 Objectives the courage to take it." Sciences, Culinary Arts and Personal C)accounting cost. Good Times’ concert is right here in town. Earn Transferable Credit & Get your Degree, Create your account to access this entire worksheet, A Premium account gives you access to all lesson, practice exams, quizzes & worksheets, Scarcity, Choice, and the Production Possibilities Curve.

opportunity cost exam questions

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