Chapter 1 Section 2 Quiz (Opportunity Cost)

8 Questions | Attempts: 2975

Opportunity Cost Quizzes & Trivia

These questions are from Chapter 1 Section 2.

Questions and Answers
  • 1. 
    The economic concept of guns or butter means that 
    • A. 

      A government must decide whether to produce more or less military or consumer goods

    • B. 

      A government can buy unlimited military and civilian goods if it is rich enough

  • 2. 
    If a person who wants to buy a CD has just enough money to buy one, and chooses CD A instead of CD B, then CD B is the 
    • A. 


    • B. 

      Opportunity cost

  • 3. 
    A decision-making grid is a visual way of
    • A. 

      Examining opportunity costs

    • B. 

      Selling goods and services

  • 4. 
    Making decisions at the margin is possible only in situations where
    • A. 

      The available opportunity costs are unclear or complicated

    • B. 

      The available alternatives can be divided into increments

  • 5. 
    Every decision involves trade-offs because
    • A. 

      Everyone has to make decisions

    • B. 

      Everyone's resources are limited

  • 6. 
    All of the following are trade-offs for a student who spends a semester abroad EXCEPT
    • A. 

      Experiencing the culture of another country

    • B. 

      Missing family activities at home

  • 7. 
    A decision that is made at the margin when each alternative considers
    • A. 

      What the "all or nothing" alternative will be

    • B. 

      Cost and benefit ranked in progressive units

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