Explore BrainMass
Share

Explore BrainMass

    Opportunity cost

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. (I think the answer is c but could possible be D) A test was scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following sentences is true?
    a. The opportunity cost of going to the movie is studying for the test.
    b. The opportunity cost of going to the party is the movie.
    c. The opportunity cost of going to the party is both the movie and the study time.
    d. Because you could go to the party only that night but could go to a movie any time, the opportunity cost of the party is the study time.
    e. From the above information, it's not possible to determine the opportunity cost of attending the party.

    E_(I think the answer is E or would it be D)_ 2. In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per cookie for Mohammed is
    a. $5
    b. 5 sweaters
    c. 48 sweaters
    d. 1/48 of a sweater
    e. 48 cookies

    ____3. Because of specialization and comparative advantage, most people
    a. consume only what they produce themselves
    b. consume the products produced by their family and friends
    c. consume the products of many other specialists
    d. do not use money as a medium of exchange
    e. share whatever they produce

    4. True or false -A point inside the production possibilities curve illustrates that resources are not being fully employed

    ____5. Because resources are not perfectly adaptable to the production of both good A and good B,
    a. the opportunity cost of A increases as production of A increases
    b. the opportunity cost of A decreases as production of A increases
    c. it is impossible for the economy to produce both A and B
    d. the opportunity cost of A is constant
    e. the opportunity cost of B is constant

    © BrainMass Inc. brainmass.com October 9, 2019, 6:31 pm ad1c9bdddf
    https://brainmass.com/economics/comparative-advantage/opportunity-cost-90344

    Solution Preview

    1. (I think the answer is c but could possible be D) A test was scheduled for Monday

    morning, but you went to a party on Saturday night. If you hadn't attended the party, you

    could have studied for the test or gone to a movie. Which of the following sentences is

    true?
    a. The opportunity cost of going to the movie is studying for the test.
    b. The opportunity cost of going to the party is the movie.
    c. The opportunity cost of going to the party is both the movie and the study time.
    d. Because you could go to the party only that night but could go to a movie any time, the

    opportunity cost of the party is the study time.
    e. From the above information, it's not possible to determine the opportunity cost of

    attending the ...

    $2.19