DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
Microeconomics:gPrinciples,gApplications,gandgTools,g9eg(O'Sullivan)gChapt
erg2g ThegKeygPrinciplesgofgEconomics
2.1 ThegPrinciplegofgOpportunitygCost
1) Thegopportunitygcostgofgsomethinggis
A) thegcostgofgtheglaborgusedgtogproducegit.
B) whatgyougsacrificegtoggetgit.
C) thegpricegchargedgforgit.
D) thegsearchgcostgrequiredgtogfindg
it.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Definition
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
2) Thegprinciplegofgopportunitygcost
A) isgmoregrelevantgforgfirmsgthangforgindividuals.
B) onlygrefersgtogmonetarygpayments.
C) isgonlygrelevantgingeconomics.
D) isgapplicablegtogallgdecisiongmakin
g.gAnswer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
3) Thegprinciplegthatgthegcostgofgsomethinggisgequalgtogwhatgisgsacrificedgtoggetgitgisgknowngasgthe
A) marginalgprinciple.
B) principlegofgopportunitygcost.
C) principlegofgdiminishinggreturns.
D) realitygprinciple
.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Definition
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
1
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
4) Thegsayinggthatg"There'sgnogsuchgthinggasgagfreeglunch"grefersgtogthe
A) marginalgprinciple.
B) spillovergprinciple.
C) principlegofgopportunitygcost.
D) realitygprinciple
.gAnswer:g C
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
5) Jacindagquitghergjobgasgagblackjackgdealergwheregshegmadeg$42,000gpergyeargtogstartghergowngflorist
gbusiness.gHergbusinessgexpensesgareg$14,000gpergyeargongrent,g$21,000gpergyeargongsupplies,gandg$9,0
00gpergyeargongpartgtimeghelp.gAsgforghergpersonalgexpenses,ghergapartmentgcostsgherg$12,000gpergyea
rgandghergpersonalgbillsgaregangextrag$6,000gpergyear.gWhatgisgJacinda'sgopportunitygcostgofgrunninggt
hegbusiness?
A) $104,000
B) $86,000
C) $62,000
D) $44,000
Answer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
6) Angunemployedgindividualgdecidesgtogspendgthegdaygfishing.gThegopportunitygcostgofgfishinggis
A) thegcostgofgbaitgandganygothergmonetarygexpenses.
B) zero,gbecausegthegpersongdoesn'tghavegagjob.
C) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegindividual'sgwagesgwhileghe
gwasgworking.
D) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegbestgalternativeguseg
ofgthegindividual'sgtime.
Answer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
2
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
7) Supposegthatgyougowngaghouse.gWhatgisgthegopportunitygcostgofglivinggingtheghouse?
A) Theregisgnogopportunitygcostgbecausegyougowngtheghouse.
B) Theregisgnogopportunitygcostgunlessgyougcouldgsetgupgagbusinessgingtheghouse.
C) Thegopportunitygcostgisgthegrentgyougcouldghavegreceivedgfromgagtenantgifgyougdidn'tglivegthere.
D) Thegopportunitygcostgisgthegcostgofgyourgmonthlygmortgagegpaymentgplusgb
ills.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
8) Stevenglivesgingagbiggcitygwheregtheregisgagshortagegofgparking.gHeghasgagparkinggspotginghisgdri
vewaygwhereghegparksghisgcar.gWhichgofgthegfollowinggstatementsgisgmostgcorrect?
A) Stevenghasgaglowergopportunitygcostgofgowninggagcargthanghisgneighbor,gwhogmustgrentgagparkinggs
pot.
B) Thegopportunitygcostgofgusinggthegspotgisgzero,gbecausegStevengownsgtheghouse.
C) Thegopportunitygcostgofgusinggthegparkinggspotgisgthegpriceghegcouldgchargegsomeonegelsegforgusin
ggthegspot.
D) ThegopportunitygcostgdependsgonghowgmuchgSteven'sgmortgagegpayment
gis.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
9) YougrentgagDVDgofgThegDarkgKnightgRises.gThegrentalgisgforgsevengdaysgandgyougwatchgthegmovieg
ongthegfirstgday.gYougtellgagfriendgaboutgthegfilmgandgyourgfriendgasksgtogcomegovergandgwatchgtheg
moviegwithgyougbeforegitgisgduegback.gWhatgisgyourgopportunitygcostgifgyougdecidegtogwatchgthegmov
iegagsecondgtimeginsteadgofggoinggtogagfootballggame?
A) thegentiregcostgofgthegmoviegrental,gsincegyoughavegalreadygwatchedgthegmovie
B) oneghalfgthegrentalgcost,gbecausegyoughavegalreadygwatchedgthegmoviegonegtime
C) thegfootballggamegyougforegogbygwatchinggthegmoviegagain
D) Theganswergdependsgonghowgmuchgyouglikedgthegmoviegingthegfirstgpl
ace.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
3
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
10) Angelina,gagegseven,gdecidesgtogdressgupglikegPrincessgFionagforgHalloween.gWhatgisgthegopport
unitygcostgofghergdecision?
A) thegcostgofgthegcostume
B) thegfactgthatgshegcan'tgdressgupglikegDoragthegExplorer,ghergsecondgchoice
C) zero,gbecausegseven-year-oldsgdon'tghavegopportunitygcosts
D) thegcostgofgthegLadygGagagcostumegwhichgshegdidgnotgw
antgAnswer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
11) Spendinggmoneygongagnewgcarginsteadgofgagusedgcargwhengyougaregongagfixedgbudgetgisgangexampl
egof
A) thegincursiongofgangopportunitygcost.
B) isolatinggvariables.
C) agbadgthinggtogdogbecausegyougrungoutgofgmoney.
D) livinggongthegedge
.gAnswer:g A
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
12) Supposegthatgyourgtuitiongtogattendgcollegegisg$24,000gpergyeargandgyougspendg$8,000gpergyeargong
roomgandgboard.gIfgyougweregworkinggfullgtime,gyougcouldgearng$30,000gpergyear.gWhatgisgyourgoppo
rtunitygcostgofgattendinggcollegegforgonegyear?
A) $32,000
B) $38,000
C) $54,000
D) $62,000
Answer:g C
Diff:g1
Topic:g ThegCostgofgCollegegS
kill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
4
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
lsg9thgEditiongOSullivan
Microeconomics:gPrinciples,gApplications,gandgTools,g9eg(O'Sullivan)gChapt
erg2g ThegKeygPrinciplesgofgEconomics
2.1 ThegPrinciplegofgOpportunitygCost
1) Thegopportunitygcostgofgsomethinggis
A) thegcostgofgtheglaborgusedgtogproducegit.
B) whatgyougsacrificegtoggetgit.
C) thegpricegchargedgforgit.
D) thegsearchgcostgrequiredgtogfindg
it.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Definition
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
2) Thegprinciplegofgopportunitygcost
A) isgmoregrelevantgforgfirmsgthangforgindividuals.
B) onlygrefersgtogmonetarygpayments.
C) isgonlygrelevantgingeconomics.
D) isgapplicablegtogallgdecisiongmakin
g.gAnswer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
3) Thegprinciplegthatgthegcostgofgsomethinggisgequalgtogwhatgisgsacrificedgtoggetgitgisgknowngasgthe
A) marginalgprinciple.
B) principlegofgopportunitygcost.
C) principlegofgdiminishinggreturns.
D) realitygprinciple
.gAnswer:g B
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Definition
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
1
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
4) Thegsayinggthatg"There'sgnogsuchgthinggasgagfreeglunch"grefersgtogthe
A) marginalgprinciple.
B) spillovergprinciple.
C) principlegofgopportunitygcost.
D) realitygprinciple
.gAnswer:g C
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
5) Jacindagquitghergjobgasgagblackjackgdealergwheregshegmadeg$42,000gpergyeargtogstartghergowngflorist
gbusiness.gHergbusinessgexpensesgareg$14,000gpergyeargongrent,g$21,000gpergyeargongsupplies,gandg$9,0
00gpergyeargongpartgtimeghelp.gAsgforghergpersonalgexpenses,ghergapartmentgcostsgherg$12,000gpergyea
rgandghergpersonalgbillsgaregangextrag$6,000gpergyear.gWhatgisgJacinda'sgopportunitygcostgofgrunninggt
hegbusiness?
A) $104,000
B) $86,000
C) $62,000
D) $44,000
Answer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
6) Angunemployedgindividualgdecidesgtogspendgthegdaygfishing.gThegopportunitygcostgofgfishinggis
A) thegcostgofgbaitgandganygothergmonetarygexpenses.
B) zero,gbecausegthegpersongdoesn'tghavegagjob.
C) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegindividual'sgwagesgwhileghe
gwasgworking.
D) thegcostgofgbait,ganygothergmonetarygexpenses,gandgthegvaluegofgthegbestgalternativeguseg
ofgthegindividual'sgtime.
Answer:g D
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
2
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
7) Supposegthatgyougowngaghouse.gWhatgisgthegopportunitygcostgofglivinggingtheghouse?
A) Theregisgnogopportunitygcostgbecausegyougowngtheghouse.
B) Theregisgnogopportunitygcostgunlessgyougcouldgsetgupgagbusinessgingtheghouse.
C) Thegopportunitygcostgisgthegrentgyougcouldghavegreceivedgfromgagtenantgifgyougdidn'tglivegthere.
D) Thegopportunitygcostgisgthegcostgofgyourgmonthlygmortgagegpaymentgplusgb
ills.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
8) Stevenglivesgingagbiggcitygwheregtheregisgagshortagegofgparking.gHeghasgagparkinggspotginghisgdri
vewaygwhereghegparksghisgcar.gWhichgofgthegfollowinggstatementsgisgmostgcorrect?
A) Stevenghasgaglowergopportunitygcostgofgowninggagcargthanghisgneighbor,gwhogmustgrentgagparkinggs
pot.
B) Thegopportunitygcostgofgusinggthegspotgisgzero,gbecausegStevengownsgtheghouse.
C) Thegopportunitygcostgofgusinggthegparkinggspotgisgthegpriceghegcouldgchargegsomeonegelsegforgusin
ggthegspot.
D) ThegopportunitygcostgdependsgonghowgmuchgSteven'sgmortgagegpayment
gis.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
9) YougrentgagDVDgofgThegDarkgKnightgRises.gThegrentalgisgforgsevengdaysgandgyougwatchgthegmovieg
ongthegfirstgday.gYougtellgagfriendgaboutgthegfilmgandgyourgfriendgasksgtogcomegovergandgwatchgtheg
moviegwithgyougbeforegitgisgduegback.gWhatgisgyourgopportunitygcostgifgyougdecidegtogwatchgthegmov
iegagsecondgtimeginsteadgofggoinggtogagfootballggame?
A) thegentiregcostgofgthegmoviegrental,gsincegyoughavegalreadygwatchedgthegmovie
B) oneghalfgthegrentalgcost,gbecausegyoughavegalreadygwatchedgthegmoviegonegtime
C) thegfootballggamegyougforegogbygwatchinggthegmoviegagain
D) Theganswergdependsgonghowgmuchgyouglikedgthegmoviegingthegfirstgpl
ace.gAnswer:g C
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
3
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgMicroeconomicsgPrinciplesgApplicationsgandgToo
lsg9thgEditiongOSullivan
10) Angelina,gagegseven,gdecidesgtogdressgupglikegPrincessgFionagforgHalloween.gWhatgisgthegopport
unitygcostgofghergdecision?
A) thegcostgofgthegcostume
B) thegfactgthatgshegcan'tgdressgupglikegDoragthegExplorer,ghergsecondgchoice
C) zero,gbecausegseven-year-oldsgdon'tghavegopportunitygcosts
D) thegcostgofgthegLadygGagagcostumegwhichgshegdidgnotgw
antgAnswer:g B
Diff:g2
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
11) Spendinggmoneygongagnewgcarginsteadgofgagusedgcargwhengyougaregongagfixedgbudgetgisgangexampl
egof
A) thegincursiongofgangopportunitygcost.
B) isolatinggvariables.
C) agbadgthinggtogdogbecausegyougrungoutgofgmoney.
D) livinggongthegedge
.gAnswer:g A
Diff:g1
Topic:g ThegPrinciplegofgOpportunitygCo
stgSkill:g Conceptual
AACSB:g ReflectivegThinkingg
LearninggOutcome:g Micro-20
12) Supposegthatgyourgtuitiongtogattendgcollegegisg$24,000gpergyeargandgyougspendg$8,000gpergyeargong
roomgandgboard.gIfgyougweregworkinggfullgtime,gyougcouldgearng$30,000gpergyear.gWhatgisgyourgoppo
rtunitygcostgofgattendinggcollegegforgonegyear?
A) $32,000
B) $38,000
C) $54,000
D) $62,000
Answer:g C
Diff:g1
Topic:g ThegCostgofgCollegegS
kill:g Analytical
AACSB:g AnalyticalgThinkingg
LearninggOutcome:g Micro-20
4
Copyrightg©g2017gPearsongEducation,gIn
c.
mynursytest.store
