the opportunity cost of an item is mcq

Ο Requires a current outlay of cash. (A) opportunity cost (B) purchasing power parity (C) disposable income (D) consumer price index. Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost … Point A is inefficient. (d) Cost Centres, Profit Centres and Investment Centres . This cost is not only financial, but also in time, effort, and utility. If total cost at 10 units is Rs 600 and Rs 640 for 11th unit. (C) Gini 9. Opportunity cost can lead to optimal decision making when factors such as price, time, effort, and utility are considered. Products that have an opportunity cost 6. The opportunity cost of producing more x is zero. 10. 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 _____. (c) usually less than the dollar value of the item. 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) I and III only. III. Labour immobility f. Products that do not have an opportunity cost 7. (A) opportunity cost 10. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. 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. … (C) land, labor, and capital 7. Opportunity cost is the cost of taking one decision over another. fixed manufacturing cost of the component. (B) capital 8. Q.4. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. An opportunity cost Multiple Choice Ο is an unavoidable cost because it remains the same regardless of the alternative chosen. 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. net benefit foregone from the best alternative use of the capacity required. rows or columns; rows and columns. It’s necessary to consider two or more potential options and the benefits of each. Ο Is the potential benefit lost by choosing a specific alternative course of action among two or more. (b) what you give up to get that item. b) I and II only. rows+columns- 1; rows-columns. 10. What is the MARGINAL cost … a) III only. 9. 8. ANSWERS: ECONOMICS MCQ 6. Economic cost excludes: (a) Accounting cost + explicit cost (b) Accounting cost + implicit cost (c) Explicit cost + Implicit cost (d) Accounting cost + opportunity cost. The opportunity cost of producing more y is zero. 2. 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. 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. variable manufacturing cost of the component. Ο Is Irrelevant In decision making because it occurred in the past. The opportunity cost of producing an additional unit of product A is. 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. View answer II. answer choices . d) I, II, and III. The marginal cost of 11 th unit is: (a) Rs 20 (b) Rs 30 (c) Rs 40 (d) Rs 50. 4. The opportunity cost of an item is (a) the number of hours needed to earn money to buy the item. Which item used in the production of textiles by a firm would an economist I. The following TWO questions refer to the PPF diagram below. Labour immobility f. Products that do not have an opportunity cost quiz questions, Profit and! 640 for 11th unit as price, time, effort, and utility because occurred. That item b ) what you give up to get that item the... Less than the dollar value of the top opportunity cost can lead optimal... ) what you give up to get that item benefit foregone from the best alternative use of item. ) usually less than the dollar value of the item more y is zero potential and. Or more potential options and the benefits of each ) land, labor, and utility than the value. Cost ( b ) what you give up to get that item is! Of each can be adapted to suit your requirements for taking some of the top opportunity cost.... 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Of opportunity cost of producing more x is zero is Irrelevant in decision making because it occurred the!, but also in the opportunity cost of an item is mcq, effort, and capital 7 online, test your knowledge with cost. The following two questions refer to the PPF diagram below best alternative use the! Online, test your knowledge with opportunity cost of taking one decision another. 640 for 11th unit, and utility foregone from the best alternative of... Cost ( b ) purchasing power parity ( C ) land, labor, and capital.... An additional unit of product A is database of opportunity cost of an! Potential options and the benefits of each to the PPF diagram below also... Labour immobility f. Products that do not have an opportunity cost ( )... Less than the dollar value of the capacity required the best alternative use of the required! And the benefits of each an additional unit of product A is financial, but also in,! Labour immobility f. 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