Your homework will be the Costs of Production Worksheet. If a trucking company were operating at capacity, but had an opportunity to fill a one-time high volume special order, which of the following ramifications could occur? Read a good novel (you value this at $13), or c. Go to work (you could earn $20). If providing service results in negative external costs, then _____. Lost revenues from regula... A company loses revenues from regular customers by accepting a special order when operating at capacity. c. can be measured only when the decision involves ex... Two friends, Monica and Chandler, enjoy baking bread and making apple pies. False, The opportunity cost of capital is the best available expected return offered in the market on an investment of comparable risk and term to the cash flow being discounted. Also explore over 4 similar quizzes in this category. The example of the mandate that washing machines use less energy, and the unintended consequence of that mandate, best demonstrates what important economic concept: a. Also explore over 4 similar quizzes in this category. B. there is an opportunity cost of leasing the condo becau... You own The Wedding Crasher on DVD. C. an accounting cost. She can take a job with another firm for $45,000 per year or work for herself. 1.25 pounds of kale b. How could she explain to her parents, using logic from economics, why she chose to m... Farmer Brian has 3 acres of land which he farms efficiently. Per Unit Opportunity Cost. b) the... Francesca has just completed her Master's degree and is considering pursuing doctoral (Ph.D.) studies in economics. Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. You can buy something today or save the money for a year at 8%. – make decisions according to best combination of costs and benefit Making Choices KEY CONCEPTS Factor 2: No Free Lunch Economic choices shaped by: All choices have a cost – Incentives — benefits that encourage people to act in certain ways – Utility — benefit or satisfaction The opportunity cost to him of studying is a. the improvement in his grades from studying for the hour. The out-of-pocket cost for the taxi cab and the movie ticket are $12. Mr. Lee have tickets to see Bruce Springsteen in concert at a stadium 50 miles away. Suppose after graduating from college you get a job working at a bank earning $30,000 per year. a. It takes Andreas 60 minutes to make a unit of beer and 10 minutes to make a unit of chips. Give examples of each. Which of the following is the formula used for computing economic profits? According to the table, the opportunity cost of 1 unit of cheese in Spain is ____ a. Barb uses 1.5 hours to produce 1 compute... Answer true or false The opportunity cost of producing in low-income, developing countries rises over the product cycle, according to theory. The total cost of the movie to the consulta... Four Guys Company has in its inventory 5,000 damaged televisions that cost $50,000. Hand out review - 25 completed questions are due on Tuesday 5. C. neither its explicit costs nor its implicit costs. What is the opportunity cost of the war on drugs? If you choose to play tennis on Monday morning and the next best alternative for use of your morning is studying, then a. the opportunity cost of playing tennis is the morning of sacrificed study t... Leland Manufacturing uses 10 units of Part Number KJ37 each month in the production of radar equipment. Consider two areas that, A and B, that each can grow coffee and tea. The highest-valued alternative that must be given up to engage in an activity is the definition of _____. b. This quiz and worksheet will test your knowledge of opportunity cost. economic depreciation IV. When faced with all available alternatives, the consumer will select the one that is ranked the highest. Alexandra__5. The opportunity cost of an action A. can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action. What is its opportunity cost in this situation? From the below options, what constitutes the largest opportunity cost? In a month, Carlos can produce a maximum of either 30 bushels of pears or 15 bushels of apples, or any linear combination in between. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The unit cost to manufacturing one unit of Z is presented below. Displaying all worksheets related to opportunity cost. All other trademarks and copyrights are the property of their respective owners. Her... Nike decides to invest $60,000,000 into a shoe factory in Vietnam. If there is a survey it only takes 5 minutes, try any survey which works for you. An opportunity cost is: a. the cost incurred to gain the opportunity to make a sale. a. tuition at a state university. Should Peyton Manning mow his own lawn? Suppose you go to University and live in a residential college on campus. Why must these questions be asked? The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is: a. For each location, the table has the labor hours required to produce one unit. How about for making ca... An example of an opportunity cost is: a) the cost of pursuing a business opportunity. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. The cost of seeds is $100. chapter 2 section 2: economics. Kurt is a professional golfer, who use to work as an engineer. Use the table to fill in the columns below and calculate Crusoe's opportunity cost of a pound of berries as he spends more time picking be... Russell spends an hour studying instead of playing tennis. B) price... John owns a bookstore and works 40 hours per week managing the store. Economics in practice – Demand for digital cameras: (a) (i) An increase in the amount spent on advertising digital cameras will shift the demand curve to the right. What is the opportunity cost of an increase in chicken production from 300 pounds to 500 pounds a year? B) whose family is extremely wealthy. Consider Noah's decision to go to college. The tickets have no resale value. The opportunity cost of one unit of Weapons Grade Plutonium in France is _____ and the opportunity cost of one unit of Organic Tofu in France is _____. Main Idea: A trade-off is the act of giving up one thing for another. 2. Can a country "over-invest" in capital? |coffee | tea |200 | 0 |160 | 40 |120 | 80 |80 | 120 |40 | 160 |0 |... What is used to measure the opportunity cost on one good when it is being compared to another good? Which of the following options is correct? She has the option of doing laundry, studying for a test, or watching television. Kris charges $30 an hour. However, the 3 acres differ in their ability to support orange trees. Their maximum outputs per hour are listed in the following table. Suppose that The Salt River Project (SRP) has a acquired a large amount of land on the outskirts of the Phoenix Metropolitan Area and is deciding between: i) constructing a large-scale solar farm... Ms. Garcia decides to work five hours the night before her economics exam. a. II... A consultant who earns $100 per hour takes four hours off work to go to the movies. The opportunity cost of working for herself is A. What term captures the fact that if I pick one, I can't do the other? What is the opportunity cost for each area to produce tea? The amount of income that would result from alternative use of cash is called: a. differential income b. sunk cost C. differential revenue d. opportunity cost. 2. Initially, suppose Bellissima uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce... Frances is a skilled toymaker who is able to produce both trucks and drums. Give an example. It takes US 50 units of labor to produce one ton of sugar and 200 units of labor to produce one crane. I am making plans for tonight. In the Ricardian model, you always produce only the goods you have a comparative advantage in producing. As You Read As you read Section 2, fill in two supporting facts or details under each main idea by answering each question. The money market account was earning 1% in interest per year or $800,000. coffee? According to the table below Reid and Bob were to trade tacos and hot dogs, what is the range of possible prices (i.e prices acceptable to both locations) for a hot dog? b. the incre... Ecuador and Argentina both produce shrimp and wheat. Suppose farmers have land that is suitable for growing both wheat and soybeans. You could grow crops on that land. (y) If the economy... Usain Bolt is the world's fastest human. If the international terms of trade settle at a level that is between each country's opportunity cost, a. only one country gains from trade. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. b. The table shows a farm's production possibilities. Give some examples. You run a florist shop in your town. Discuss how to make decisions, based on opportunity cost. How does Apple's decision change the opportunity cost of a download? d. transportation, parking, and entertai... Niall receives $100 as a birthday gift. The opportunity cost of going to college is a. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses. His objective is to maximize the savings he will have in the bank five years... Robinson and Crusoe live on a deserted island. You will need to use the reading from Ch 5 Sec 2 … 2.5 dozen roses b. Units Gained. The implicit rental rate is the A. amount paid for the use of a piece of capital equipment owned by someone else. Darnell lives in San Francisco and runs a business that sells pianos. He earned $80,000 as an engineer but now earns $400,000 as a golfer. B. can be determined by addi... "If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." If Purdy is currently producing 210 cars and 175 trucks,... State true or false and justify your answer: The payments to quasi-fixed inputs should be ignored in decision making since they are not opportunity costs. 1/5 of a lobs... As the interest rate increases, the opportunity cost of holding money and individuals choose to hold money. The economy is unable to produce increasing quantities of goods and services, b. His neighbor Diana tells him that he can "save a lot" by frequenting a gas station 20 miles outside the neighborhood where the pric... Give some real-life examples of opportunity cost. Is... What is an opportunity cost and how does it affect our daily lives? If Josh rides his bike he will not incur any expenses and it will take him 45 mins to get to university. FYI- To hire someone to shov... What is an example of how the Principle of Opportunity Cost applies to your life? Economics Chapter 2 Section 3. The tables show their production possibilities. The term "opportunity cost" points out that a public good is ______. Theo has no employees and estimate he could rent his wagon to another entr... Josh has two points for getting to university; he can drive or ride his bike. Suppose tammy has a crisp $50 dollar bill and ranks what she will do with it in this order; #1 buy a skirt; #2 buy food; #3 buy a video game, or #4 buy concert tickets. The lost profits from lost customers are an example of what type of cost? $80,000 b. Imran is a dairy farmer and currently has revenues of $40,314 per month. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. What is the definition of "opportunity cost"? Every society faces trade-offs because we live in a world of scarcity. c. one half dozen eggs. ... Economics, Chapter 1, Section 2: Opportunity Cost. What is the opportunity cost of making cars in South Korea? b. the foregone earnings (... Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons. In order to read or download Disegnare Con La Parte Destra Del Cervello Book Mediafile Free File Sharing ebook, you need to create a FREE account. In creating your response, consider the fol... Is the cost of a permit to park your car on a campus parking lot a part of your opportunity cost to attend the school, if you would not have to pay for parking otherwise? WORKSHEET Section 2. It takes the US 50 units of labor to produce one ton of sugar and 200 units of labor to produce one crane. I. These questions are from Chapter 1 Section 2. Which statement is true about opportunity cost? Her opportunity cost of napping is: a) The value of the knowledge she would have received had she attended class, b... Melody decides to spend three hours working overtime rather than going to the park with her friends. When Lucy chose a major, she likely thought about her skills. Test Thursday over chapter 1 Thursday: Learning Target: Understand the difference between opportunity cost and trade-offs and production possibilities curve. Steve and Craig have been shipwrecked on a deserted island in the South Pacific. An opportunity cost a. is impossible to measure. When Warren Buffett graduated from Columbia, he asked Benjamin Graham for a job (for no salary) at the Graham-Newman Co. Her total revenue for the y... Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. The opportunity cost of holding money is: a. zero. According to the figure above, the opportunity cost of producing another computer is. How do we decide on opportunity cost when we have several opportunities that need to be foregone? In the graph below, the opportunity cost in equilibrium is represented by area A. What is the "opportunity cost"? Elite U costs $50,000 per year and did not offer Lutfi any financial aid. The total amount of ca... A University offers a free shuttle service around campus. $4... Had cable TV prices stayed low, would satellite TV service have spread as fast? Suppose your management professor has been offered a corporate job with a 30 percent pay increase. The unit cost to manufacture 1 unit of KJ37 is presented below. Why might a profitable motel shut down, in the long run, if the land on which it is located becomes extremely valuable, due to surrounding economic development? Suppose a student has 3 hours of time to spend at her apartment before afternoon classes. Suppose you can purchase milk for $3 a gallon or eggs for $1.50 per dozen. She earns $20 per hour for overtime work. c. downward-sloping demand. c. the benefit given up by choosing an alternative... Daniel decides to spend an hour playing basketball rather than working at $6 per hour. 1. Who makes trade-offs? When society forgoes the opportunity of getting the next best thing, that sacrifice is a. utility. Hanna has to decide between accepting a job with a salary of 20,000 per year, or studying for a master's degree, in which she would have to pay tuition fees of 10,000. The United States Government has plans to spend billions of dollars on a mission to mars. What would the production possibilities curve actually mean? Each acre can support 20 apple trees. B. D. normal profits. Danny can either mow 5 lawns or clean 25 windows in 5 hours. a. Economists and accountants treat production costs differently. Explain. Should use appropriate models/graphs: Opportunity cost. What information would you need to calculate the total opportunity cost of operating Harvey's hardware business? If John can wash a car in 75 minutes and wash a dog in 15 minutes, and Maria can wash a car in 40 minutes and wash a dog in 10 minutes, which of the following statements is true? Given a budget of 5 hours studying Math and Economics exams, what is the maximum possible combined test score could this student earn? What is the opportunity cost of 60 dozen orchids? D. opportunity costs. Tom just completed high school and is trying to determine whether to go to university for two years or directly to work. If he drives h... Tony and Patty produce skis and snowboards. Can't find the question you're looking for? Usain could mow his lawn very quickly, much more quickly and at least as well as James Bold, who mows lawns for living. C. explicit cost plus the implicit cost. For students who accept... What are the tools that can be used to value non-financial opportunity costs? Which of the following statements is (are) correct? In Snap each worker in a one-hour period can produce either 13.72 pounds of bananas or 7.48 pounds of sugar. Assume the standard model. The current value of the guitar shop is $1.2 million. Her annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. My friends are so mad that they do not know how I have all the high quality ebook which they do not! Explain why or why not. She is considering quitting her job and going to university full time for four years. The Canadian government is considering whether to spend $200 million on new hospitals or $200 million on new fighter jets. The diagram above shows the production possibilities curves for Abhi and Jillian who both produce pedometers and stopwatches using the same amount of resources. It takes Brazil 60 units of labor to produce one ton of sugar and 300 units of labor to pr... Christine worked as a consultant last year. Assuming you are the chief executive officer (CEO) of Walmart, describe a situation in which you would use marginal analysis to make a business decision. Suppose a book costs $10 and takes 3 hours to read and a concert costs $20 and takes 3 hours. The opportunity cost of attending class this evening is A. Give an example. Zappa, a mechanic, left his $25,000-a-year job at Joe's Garage to start his own body shop. Absolute Advantage. wages A. I and II B. II and III C. I and IV D. I, II, III, and IV. Lutfi values attending Elite U at $60,000 per y... Sara can produce 1 gallon of wine in 20 minutes and a hamburger in 5 minutes. Opportunity cost refers to: A. the prices paid to an opportunity shop B. wants that are given up in order to get something else C. unwanted resources D. cost use to produce resources View Answer Given the following opportunity loss function, determine the loss when 7,000 units are sold. You're trying to decide whether to put the $10,000 in a non-interest-bearing account so that you can use it whenever you want (that is, hold i... What does increasing marginal opportunity costs mean? She is thinking of quitting this job to work full time in her own business. Go ahead and submit it to our experts to be answered. The greatest use of our limited resources occurs when _____. She earns $8 an hour. Create an account to browse all assets today, Biological and Biomedical If the opportunity cost for leisure is wages, then is the opportunity cost for work leisure? Harvey owns both a hardware business and the building that he uses to run the firm. With respect to the Ricardian model, suppose countries are alike in the amount of labor they have available and in the input requirements needed to produce each unit of the goods. b. the tuition paid for the year. Does every decision come with an opportunity cost? Using an example in your professional life, identify a situation where you were presented with a choice, the opportun... What is opportunity cost? Assume you own an office building. d. inferior goods. Suppose that a farmer has land that can produce 20 bushels of corn per acre or 10 bushels of wheat per acre. In the country of Zana, a unit of labor can produce 4 units of good X or 2 units of good Y; in the country of Bren, a unit of labor can produce 2 units of good X or 1 unit of good Y. Assume that the rental cost of ski equipment is $120 and the lift ticket costs $66. Many years ago prof. Willen was on a committee discussing ways to recruit students to his University. How is it related to efficiency, waste, and standard of living? The opportunity cost of watching this DVD for the fourth time A. is the value of the alternative use of the time you spend watching the DVD. True or False: Assume you own an office building. b. exists for every decision made by individuals and businesses, but not by the government. What kinds of costs are involved in... You are considering adding a new software title to those published by your highly successful software company. a. Which of the following, if true, would suggest that the company should concentrate on its opportunities? The highest-valued alternative that must be sacrificed as a result of choosing among alternatives is called the of the alternative chosen. The ticket normally sells for $90, but you cannot sell yours. Consider a nation that produces baseball mitts and soccer balls. His tradeoff is Select one: a. nothing, because he enjoys playing basketball more than working. d. $1.50. Opportunity cost refers to: A. the prices paid to an opportunity shop B. wants that are given up in order to get something else C. unwanted resources D. cost use to produce resources. Investors expect the stock to pay a year-end dividend of $3. C. both wheat and cloth. The topics covered and learning outcomes are given in these themes so everybody can find something of interest here. Assume the standard model. In one day, Tommy can produce 4 term papers for 12 study guides. I get my most wanted eBook. b. increasing relative costs. Suppose you win $500 from a scratch-off ticket. The opportunity cost of using this building as office space for your own business is the aggregate value of all of the foregone alternative uses for the space. b. the benefit gained by choosing a certain course of action. A firm should enter an industry if total revenue is equal to total cost. If you decide to go to Florida, the opp... Paolo can walk three dogs or mow two lawns in two hours. 2. State true or false and justify your answer: People face identical opportunity costs when making decisions. College-age athletes who drop out of college to play professional sports: a) Are not rational decision-makers, b) Are well aware that the opportunity cost of attending college is very high, c) Are... Barb's aunt gave her $100 for her birthday with the condition that Barb buys herself something. Is there a difference between monetary and non-monetary opportunity costs? Also, how could the student maximize his net benefit after receiving his college degree? (d) the d... All decisions involve opportunity costs. A severe thunderstorm on the night of the concert makes driving hazardous. The opportunity cost to him of studying is: a) The improvement in his grades from studying for the hour, b) The improvement in... Ramona decides to spend two hours taking a nap rather than attending her classes. Comparative Advantage Wheat Cloth Great Britain 160 640 The United States 1,280 640 a. The below table shows their Production possibilities schedules, which describe various combinations of fishing... Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. The money price of a box of ramen noodles is _____.