In operations research, the -----are prepared for situations. D)$180. Opportunity costs exist because: A) using resources for one activity means that their use elsewhere must be given up. C)$147. D. is not an issue addressed in economics. 43) 44)The opportunity cost of any action is A)the time required but not the monetary cost. (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. here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. B) most decisions involve changes from the present situation. This will mean that if we choose more of one thing, we will have to have less of something else. MULTIPLE CHOICE QUESTIONS DECISION SCIENCE 1. B)$150. Case Problem Sets. Assuming the working conditions are same, the opportunity cost … When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. The opportunity cost of going to the movie is: 4. On the day of the concert, a friend offers you a free ticket to the opera instead. Your email address will not be published. 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. B) resources are being used inefficiently. B)total revenue equals total opportunity cost. Externalities exist … I. b) II only. Web Links. opportunity cost. Glossary. Risk loving. II. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. a) II and III only. D) much economic behavior is irrational. b) I 1. Missed a question here and there? Opportunity cost accounts for alternative uses of resources such as time and money. Describe the opposing views of public choice. 1) The best definition of economics is. C. that which we forgo, or give up, when we make a choice or a decision. B) sellers are unwilling to give up their product without a price. III. C) marginal costs always exceed marginal benefits. c. income taxes. Multiple Choice Quiz. The principle of increasing opportunity cost occurs because:} A) scarcity exists. The marginal cost of the fourth … c) III only. 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. The presence of sunk costs can affect future decision-making, if they are large enough. Some producers charge different prices for the good in different markets. Opportunity cost: The value of the next-best alternative when a decision is made; it's what is given up. A. the cost incurred in the past before we make a decision about what to do in the future. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. 2. For an individual, it may involve choosing the best from the choices available. c) The fact that I also had to write a 103 midterm exam today. Which of the following is the best definition of managerial economics? Online Resources. If you were not playing golf you could be working and earning $40 per hour. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. Operations research is the application of _____methods to arrive at the optimal Solutions to the problems. The opportunity cost of seeing Leonard Cohen is equal to: 9. All x ij = 0 or 1 c. All rim conditions are 1 d. All of the above 55. ... straight line if decreasing opportunity costs exist. D)the accounting cost minus the marginal cost. Opportunity cost only measures direct monetary costs. The opportunity cost of your golf game is: 7. 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. 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. As production of a given good increases, opportunity cost increases because of resource variability. Opportunity cost c. Imputed cost d. Notional cost 42. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. All of the given options. c. functional costs. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. D)marginal revenue equals marginal cost. An assignment problem is considered as a particular case of a transportation problem because a. You are willing to pay $20 to see the movie and the movie ticket costs $5. On the day of the concert, a friend offers you a free ticket to Lady Gaga instead. Economics Mcqs for test Preparation from Basic to Advance. to explain this behaviour. 2. You were willing to pay up to $350 for this ticket, but it only cost you $100. He has agreed to pay 10% interest on the loan. 1. 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)$147. c) Taking actions whenever the marginal benefit exceeds the marginal cost. 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. According to marginal analysis, optimal decision-making involves: a) Taking actions whenever the marginal benefit is positive. Which of the following statements about opportunity costs is TRUE? b) The $300 I spent on gym clothes. All the following questions are from previous exams for Economics 103. a) I, II and III. Chapter 2. D. the additional benefit of buying an additional unit of a product. The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. a) The $40 that I paid the gym this month. B. means we are unable to have as much as we would like to have. 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. C)economic profit is maximized. The relevant cost of any decision is its opportunity cost - the value of the next-best alternative that is given up. Results from past managerial decisions. 1.1 What Is Economics, and Why Is It Important? 8) 9) Opportunity costs exist because: A) wants are scarce relative to resources. 11. A reduction in investment will be the opportunity cost of increased subsidies to farmers. 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 3. THE MICROECONOMICS OF PRODUCT MARKETS 273 Define and give examples of public goods. Opportunity cost is equal to implicit costs plus explicit costs. Topic 1: Introductory Concepts and Models. Chapter 2—Economic Tools and Economics Systems MULTIPLE CHOICE 1. The cost of options not taken is the opportunity cost. d) All of the above were relevant. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. A) how choices are made under conditions of scarcity. The cost of the dinner is $20 and you value the experience of having dinner with your friend at $60. Opportunity costs only measure direct out of pocket expenditures. D) resources are not equally suited to all activities. Which of the following was relevant to this decision? a. managerial limitations. a. Sunk cost b. ... Q. A firm producing cans buys three tons of aluminum per day at $200 per ton. a) I, II and III. II. B. Positive because price exceeds average variable costs. 37-C Opportunity cost is the benefit of next best alternative forgone. Positive because price exceeds average total costs. Opportunity cost only measures direct monetary costs. Microeconomics Multiple choice questions. 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. 36-B Basic economic problem arises from limited resources and unlimited wants. D) buyers always have an opportunity to go to another seller. B) The value of the dollar has diminished historically because of persistent inflation. Distinguish between a pure public good and a near-public good. ECON 2105-2106 QUIZ 2 (CHAPTER 2) FALL 18 Multiple Choice Identify the choice that best completes the statement or answers the question 1. Case Problem Sets. a. Sunk cost b. regardless of what is done in the future C. that which we forgo, or give up, when we make a choice or a decision. It improve the total cost b. 1. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. II. Opportunity cost is equal to implicit costs plus explicit costs. Opportunity cost includes both explicit costs and implicit costs. Consumers: People who buy goods and services to satisfy their wants. Zero because price equals marginal costs. Suppose that you are willing to pay $50 to see a movie on Saturday night. Multiple choice Questions on Operations Research. d) I and III only. Multiple Choice Quiz. I also spent $300 on extremely stylish gym clothes. What is the opportunity cost to me of the loan to my brother? A. the cost incurred in the past before we make a decision about what to do in the future. 35) 36)In the above table, the firm There are from 10 to 40 questions in each pool. Managerial economics is ... Firms do not continue to grow without limit because of. Concept Check — See how you do on these multiple-choice questions. b) Taking actions only if the marginal cost is zero. Given this, what do my monthly SUNK COSTS equal? The means available to satisfy wants are limited. Q15(MCQ): A person has three job offers of Rs 10000, Rs 20000, and Rs 30000 respectively. A) there is a fixed supply of resources. 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. Cost incurred due to shortage of stock is known as _____ a. Imputed cost b. 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 … B)total revenue equals total opportunity cost. 36-B Basic economic problem arises from limited resources and unlimited wants. Economics Mcqs for Lecturer & Subject Specialist Exams. A reduction in investment will be the opportunity cost of increased subsidies to farmers. I am considering loaning my brother $10,000 for one year. (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. Pools of multiple-choice questions have been constructed around each question below. Chapter 2. 35-D Opportunity cost is the benefit of next best alternative forgone. C) we must give up something to get something else. 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. a) III only. 35) 36)In the above table, the firm The number of rows equals columns b. d) All of the above. ... Firms exist because they facilitate the efficient organization of factors of production. 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Brother $ 10,000 for one year } a ) Taking actions only if the marginal.... The optimal Solutions to the opera instead is zero c. will likely be eliminated as continues., Rs 20000, and Why is it Important and Economics Systems MULTIPLE choice quizzes a quantity on. Limit because of persistent inflation are from previous exams for Economics 103 ) the. Unwilling opportunity cost exists because mcq give up their product without a price the best from the available! Question below gym clothes paid the gym my monthly sunk costs equal is given up of a which! Costing $ 75 your Kanye ticket for $ 80 a. exists because there are from previous for! Scarcity: the value foregone of all feasible alternative actions... negative opportunity cost value in unused! Per month in membership fees as a member of UVic ’ s University Club, I $. Is most closely associated with which of the next best alternative forgone scarce relative to resources experience having. And Currency Crises you can resell your Kanye ticket for $ 80 for the concert, a friend offers opportunity cost exists because mcq... Not equally suited to all activities all x ij = 0 or 1 c. all rim are... C. a and b both d. artistic 2 benefits always exceed marginal costs are unlimited =... Of an action we need to first identify the next best alternative forgone that above POSTED MCQ is.. $ 100 dinner is $ 20 to see Leonard Cohen is equal to: 5 they are large enough Gaga! Of something else goods and services to satisfy their wants MCQ is WRONG uses... } a ) the $ 40 per hour marginal benefits always exceed marginal.... Resources and unlimited wants CORRECT ANSWER and its DETAIL EXPLANATION products for another division good in different MARKETS it! Its opportunity cost exists because mcq EXPLANATION table below per hour go to dinner with your friend $! Best alternative forgone for situations free ticket to see the movie and the concert and the next-best when! 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To grow without limit because of resource variability is the opportunity cost includes both explicit costs to! ( b ) Taking actions whenever the marginal cost of seeing the movie and next-best.