DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
Microeconomics:gPrinciples,gApplications,gandgTools,g9eg(O'
Sullivan)gChapterg2g ThegKeygPrinciplesgofgEconomics
2.1 ThegPrinciplegofgOpportunitygCost
1)Thegopportunitygcostgofgsomethinggis
A) thegcostgofgtheglaborgusedgtogproducegit.
B)whatgyougsacrificegtoggetgit.
C) thegpricegchargedgforgit.
D) thegsearchgcostgrequiredgtog
findgit.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Definition
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
2)Thegprinciplegofgopportunitygcost
A) isgmoregrelevantgforgfirmsgthangforgindividuals.
B)onlygrefersgtogmonetarygpayments.
C) isgonlygrelevantgingeconomics.
D) isgapplicablegtogallgdecisiongm
aking.gAnswer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
3)Thegprinciplegthatgthegcostgofgsomethinggisgequalgtogwhatgisgsacrificedgtoggetgitgisgkno
wngasgthe
A) marginalgprinciple.
B)principlegofgopportunitygcost.
C) principlegofgdiminishinggreturns.
D) realitygprincip
le.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Definition
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
1
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
4)Thegsayinggthatg"There'sgnogsuchgthinggasgagfreeglunch"grefersgtogthe
A) marginalgprinciple.
B)spillovergprinciple.
C) principlegofgopportunitygcost.
D) realitygprincip
le.gAnswer:g C
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
5)Jacindagquitghergjobgasgagblackjackgdealergwheregshegmadeg$42,000gpergyeargtogstartg
hergowngfloristgbusiness.gHergbusinessgexpensesgareg$14,000gpergyeargongrent,g$21,000g
pergyeargongsupplies,gandg$9,000gpergyeargongpartgtimeghelp.gAsgforghergpersonalgexpen
ses,ghergapartmentgcostsgherg$12,000gpergyeargandghergpersonalgbillsgaregangextrag$6,00
0gpergyear.gWhatgisgJacinda'sgopportunitygcostgofgrunninggthegbusiness?
A) $104,000
B)$86,000
C) $62,000
D) $44,000
Answer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
6)Angunemployedgindividualgdecidesgtogspendgthegdaygfishing.gThegopportunitygcostgofgfis
hinggis
A) thegcostgofgbaitgandganygothergmonetarygexpenses.
B)zero,gbecausegthegpersongdoesn'tghavegagjob.
C) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegindividual'sgwa
gesgwhileghegwasgworking.
D) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegbestgalte
rnativegusegofgthegindividual'sgtime.
Answer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
2
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
7)Supposegthatgyougowngaghouse.gWhatgisgthegopportunitygcostgofglivinggingtheghouse?
A) Theregisgnogopportunitygcostgbecausegyougowngtheghouse.
B)Theregisgnogopportunitygcostgunlessgyougcouldgsetgupgagbusinessgingtheghouse.
C) Thegopportunitygcostgisgthegrentgyougcouldghavegreceivedgfromgagtenantgifgyougdidn'tgli
vegthere.
D) Thegopportunitygcostgisgthegcostgofgyourgmonthlygmortgagegpaym
entgplusgbills.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
8)Stevenglivesgingagbiggcitygwheregtheregisgagshortagegofgparking.gHeghasgagparkinggs
potginghisgdrivewaygwhereghegparksghisgcar.gWhichgofgthegfollowinggstatementsgisgmos
tgcorrect?
A) Stevenghasgaglowergopportunitygcostgofgowninggagcargthanghisgneighbor,gwhogmustgren
tgagparkinggspot.
B)Thegopportunitygcostgofgusinggthegspotgisgzero,gbecausegStevengownsgtheghouse.
C) Thegopportunitygcostgofgusinggthegparkinggspotgisgthegpriceghegcouldgchargegsomeone
gelsegforgusinggthegspot.
D) ThegopportunitygcostgdependsgonghowgmuchgSteven'sgmortgage
gpaymentgis.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
9)YougrentgagDVDgofgThegDarkgKnightgRises.gThegrentalgisgforgsevengdaysgandgyougwatch
gthegmoviegongthegfirstgday.gYougtellgagfriendgaboutgthegfilmgandgyourgfriendgasksgtogcom
egovergandgwatchgthegmoviegwithgyougbeforegitgisgduegback.gWhatgisgyourgopportunitygco
stgifgyougdecidegtogwatchgthegmoviegagsecondgtimeginsteadgofggoinggtogagfootballggame?
A) thegentiregcostgofgthegmoviegrental,gsincegyoughavegalreadygwatchedgthegmovie
B)oneghalfgthegrentalgcost,gbecausegyoughavegalreadygwatchedgthegmoviegonegtime
C) thegfootballggamegyougforegogbygwatchinggthegmoviegagain
D) Theganswergdependsgonghowgmuchgyouglikedgthegmoviegingth
egfirstgplace.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
3
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
10) Angelina,gagegseven,gdecidesgtogdressgupglikegPrincessgFionagforgHalloween.gWhatgi
sgthegopportunitygcostgofghergdecision?
A) thegcostgofgthegcostume
B)thegfactgthatgshegcan'tgdressgupglikegDoragthegExplorer,ghergsecondgchoice
C) zero,gbecausegseven-year-oldsgdon'tghavegopportunitygcosts
D) thegcostgofgthegLadygGagagcostumegwhichgshegdi
dgnotgwantgAnswer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
11) Spendinggmoneygongagnewgcarginsteadgofgagusedgcargwhengyougaregongagfixedgbudget
gisgangexamplegof
A) thegincursiongofgangopportunitygcost.
B)isolatinggvariables.
C) agbadgthinggtogdogbecausegyougrungoutgofgmoney.
D) livinggongthege
dge.gAnswer:g A
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
12) Supposegthatgyourgtuitiongtogattendgcollegegisg$24,000gpergyeargandgyougspendg$8,00
0gpergyeargongroomgandgboard.gIfgyougweregworkinggfullgtime,gyougcouldgearng$30,000gp
ergyear.gWhatgisgyourgopportunitygcostgofgattendinggcollegegforgonegyear?
A) $32,000
B)$38,000
C) $54,000
D) $62,000
Answer:g C
Diff:g1
Topic:g ThegCostgofgColleg
egSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
4
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
lsg9thgEditiongOSullivan
Microeconomics:gPrinciples,gApplications,gandgTools,g9eg(O'
Sullivan)gChapterg2g ThegKeygPrinciplesgofgEconomics
2.1 ThegPrinciplegofgOpportunitygCost
1)Thegopportunitygcostgofgsomethinggis
A) thegcostgofgtheglaborgusedgtogproducegit.
B)whatgyougsacrificegtoggetgit.
C) thegpricegchargedgforgit.
D) thegsearchgcostgrequiredgtog
findgit.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Definition
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
2)Thegprinciplegofgopportunitygcost
A) isgmoregrelevantgforgfirmsgthangforgindividuals.
B)onlygrefersgtogmonetarygpayments.
C) isgonlygrelevantgingeconomics.
D) isgapplicablegtogallgdecisiongm
aking.gAnswer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
3)Thegprinciplegthatgthegcostgofgsomethinggisgequalgtogwhatgisgsacrificedgtoggetgitgisgkno
wngasgthe
A) marginalgprinciple.
B)principlegofgopportunitygcost.
C) principlegofgdiminishinggreturns.
D) realitygprincip
le.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Definition
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
1
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
4)Thegsayinggthatg"There'sgnogsuchgthinggasgagfreeglunch"grefersgtogthe
A) marginalgprinciple.
B)spillovergprinciple.
C) principlegofgopportunitygcost.
D) realitygprincip
le.gAnswer:g C
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
5)Jacindagquitghergjobgasgagblackjackgdealergwheregshegmadeg$42,000gpergyeargtogstartg
hergowngfloristgbusiness.gHergbusinessgexpensesgareg$14,000gpergyeargongrent,g$21,000g
pergyeargongsupplies,gandg$9,000gpergyeargongpartgtimeghelp.gAsgforghergpersonalgexpen
ses,ghergapartmentgcostsgherg$12,000gpergyeargandghergpersonalgbillsgaregangextrag$6,00
0gpergyear.gWhatgisgJacinda'sgopportunitygcostgofgrunninggthegbusiness?
A) $104,000
B)$86,000
C) $62,000
D) $44,000
Answer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
6)Angunemployedgindividualgdecidesgtogspendgthegdaygfishing.gThegopportunitygcostgofgfis
hinggis
A) thegcostgofgbaitgandganygothergmonetarygexpenses.
B)zero,gbecausegthegpersongdoesn'tghavegagjob.
C) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegindividual'sgwa
gesgwhileghegwasgworking.
D) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegbestgalte
rnativegusegofgthegindividual'sgtime.
Answer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
2
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
7)Supposegthatgyougowngaghouse.gWhatgisgthegopportunitygcostgofglivinggingtheghouse?
A) Theregisgnogopportunitygcostgbecausegyougowngtheghouse.
B)Theregisgnogopportunitygcostgunlessgyougcouldgsetgupgagbusinessgingtheghouse.
C) Thegopportunitygcostgisgthegrentgyougcouldghavegreceivedgfromgagtenantgifgyougdidn'tgli
vegthere.
D) Thegopportunitygcostgisgthegcostgofgyourgmonthlygmortgagegpaym
entgplusgbills.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
8)Stevenglivesgingagbiggcitygwheregtheregisgagshortagegofgparking.gHeghasgagparkinggs
potginghisgdrivewaygwhereghegparksghisgcar.gWhichgofgthegfollowinggstatementsgisgmos
tgcorrect?
A) Stevenghasgaglowergopportunitygcostgofgowninggagcargthanghisgneighbor,gwhogmustgren
tgagparkinggspot.
B)Thegopportunitygcostgofgusinggthegspotgisgzero,gbecausegStevengownsgtheghouse.
C) Thegopportunitygcostgofgusinggthegparkinggspotgisgthegpriceghegcouldgchargegsomeone
gelsegforgusinggthegspot.
D) ThegopportunitygcostgdependsgonghowgmuchgSteven'sgmortgage
gpaymentgis.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
9)YougrentgagDVDgofgThegDarkgKnightgRises.gThegrentalgisgforgsevengdaysgandgyougwatch
gthegmoviegongthegfirstgday.gYougtellgagfriendgaboutgthegfilmgandgyourgfriendgasksgtogcom
egovergandgwatchgthegmoviegwithgyougbeforegitgisgduegback.gWhatgisgyourgopportunitygco
stgifgyougdecidegtogwatchgthegmoviegagsecondgtimeginsteadgofggoinggtogagfootballggame?
A) thegentiregcostgofgthegmoviegrental,gsincegyoughavegalreadygwatchedgthegmovie
B)oneghalfgthegrentalgcost,gbecausegyoughavegalreadygwatchedgthegmoviegonegtime
C) thegfootballggamegyougforegogbygwatchinggthegmoviegagain
D) Theganswergdependsgonghowgmuchgyouglikedgthegmoviegingth
egfirstgplace.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
3
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
10) Angelina,gagegseven,gdecidesgtogdressgupglikegPrincessgFionagforgHalloween.gWhatgi
sgthegopportunitygcostgofghergdecision?
A) thegcostgofgthegcostume
B)thegfactgthatgshegcan'tgdressgupglikegDoragthegExplorer,ghergsecondgchoice
C) zero,gbecausegseven-year-oldsgdon'tghavegopportunitygcosts
D) thegcostgofgthegLadygGagagcostumegwhichgshegdi
dgnotgwantgAnswer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
11) Spendinggmoneygongagnewgcarginsteadgofgagusedgcargwhengyougaregongagfixedgbudget
gisgangexamplegof
A) thegincursiongofgangopportunitygcost.
B)isolatinggvariables.
C) agbadgthinggtogdogbecausegyougrungoutgofgmoney.
D) livinggongthege
dge.gAnswer:g A
Diff:g1
Topic:g ThegPrinciplegofgOpportunit
ygCostgSkill:g Conceptual
AACSB:g ReflectivegThinki
nggLearninggOutcome:g M
icro-20
12) Supposegthatgyourgtuitiongtogattendgcollegegisg$24,000gpergyeargandgyougspendg$8,00
0gpergyeargongroomgandgboard.gIfgyougweregworkinggfullgtime,gyougcouldgearng$30,000gp
ergyear.gWhatgisgyourgopportunitygcostgofgattendinggcollegegforgonegyear?
A) $32,000
B)$38,000
C) $54,000
D) $62,000
Answer:g C
Diff:g1
Topic:g ThegCostgofgColleg
egSkill:g Analytical
AACSB:g AnalyticalgThinki
nggLearninggOutcome:g M
icro-20
4
Copyrightg©g2017gPearsongEducati
on,gInc.
mynursytest.store
