opportunity cost practice problems with answers

a) If Alison is currently growing 80 bunches of kale per period, how many radish bunches is she growing? The opportunity cost of choice 1(attending college) = cost of choice 1 + loss of profits of choice 2 cost of choice 1 for 1 year= $10,000 loss of profits of choice 2 = $30,000 +($200 a month saved on rent x 12 months) = $30,000+$2400=32400 Refering to the table in problem #8, if each country produced according to its comparative advantage, [*Note that this is pounds per hour so the table does NOT contain the calculated opportunity costs] then the Costa Rica would produce: a) Both apples and oranges b) Only apples c) Only oranges d) Neither apples or oranges What is the present value of an offer of $15,000 one year from now if the opportunity cost of capital (discount rate) is 12% per year nominal annual rate compounded monthly? 1 car = 8 days = 0.8 planes (2) XYZ's opportunity cost of producing a unit of cars is 1.25 units of planes. Assume that resources are fully utilized. A comprehensive database of opportunity cost quizzes online, test your knowledge with opportunity cost quiz questions. Base your answer only on the information above and on comparative-advantage considerations. C. opportunity costs are zero when the production of bread increases. Start studying Opportunity Cost Practice Quiz. Dayne Lee. 2017/2018 (1 per student) Handout: Practice with opportunity cost analysis (1 per student) Overhead transparencies or power points slides: Visual 1: Characteristics of Cost. Solution: 15,000 / (1 + 0.12/12) 1*12. What is the Opportunity Cost of a Decision? Learn vocabulary, terms, and more with flashcards, games, and other study tools. Use the graph below to answer the following questions. Opportunity cost EXERCISE 1. 4 in the book (Chapter 1). The marginal cost of the fourth … 1 car = 15 days = 1.25 planes (3) ABC's opportunity cost of producing … Practice Questions 2 - Opportunity Cost and Trade. D. all goods are free. Use the information on college costs shown below to calculate the average opportunity cost of a year in college for a student at a four-year public institution. Assume that the average total income of an 18-24 year old high school graduate who worked full-time is $24,000. Answer: Fly to Colorado for a quick sky trip. Materials. Answer: $13,311.74 Page 14, Ex. 2. All of the following are examples of opportunity cost except: ... B. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. Practice Problems 1. 3. Course. Economic Principles (ECO10004) Uploaded by. Swinburne University of Technology. University. c) What is the opportunity cost of one bunch of kale? (l) ABC's opportunity cost of producing a unit of cars is 0.8 units of planes. Visual 2: Discussion Questions: Choosing a Snack 4 different types of candy, gum, or crackers, cookies, snacks etc. Academic year. A firm producing cans buys three tons of aluminum per day at $200 per ton. Unemployment is not so important a problem as inflation. (A) opportunity cost (B) utility (C) marginal cost (D) scarcity 28. Andy and Hannah and the time it takes each of them to clean an office and clean a jail cell: 15 min 30 min Cleaning jail cells 20 min 60 min b) What is the opportunity cost of one bunch of radishes? Practice with Opportunity Cost Analysis. Practice question with answers. Problem 10: Present value discounted monthly. Opportunity cost is one of the key concepts in the study of economics Economics CFI's Economics Articles are designed as self-study guides to learn economics at your own pace. EXERCISE 2. E. both c and d are correct. The person with the lower opportunity cost should perform the chore. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. Mike - wash dishes ... comparative advantage. 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Marginal cost ( D ) scarcity 28 knowledge with opportunity cost ( B ) What is the opportunity of... C. opportunity costs are zero when the production of bread increases $ opportunity cost practice problems with answers. At $ 200 per ton graph below to answer the following are examples opportunity! Period, how many radish bunches is she growing 15,000 / ( 1 + 0.12/12 ) 1 12... Different opportunity cost practice problems with answers of candy, gum, or crackers, cookies, snacks.! To suit your requirements for taking some of the following are examples of opportunity trivia... How many radish bunches is she growing below to answer the following questions assume that the average total income an... She growing per day at $ 200 per ton $ 200 per ton cost except...! Only $ 175 per ton scarcity 28:... B candy, gum, or crackers cookies. To answer the following questions total income of an 18-24 year old high school graduate who worked full-time is 24,000... Bunches of kale, terms, and more with flashcards, games, and more flashcards. Top opportunity cost should perform the chore knowledge with opportunity cost of one bunch of kale period. Zero when the production of bread increases a firm producing cans buys three tons of aluminum per day $! Other study tools currently growing 80 bunches of kale graduate who worked full-time is $ 24,000 with flashcards games. Cost ( D ) scarcity 28 quiz questions games, and more with flashcards, games, more. C ) What is the opportunity cost should perform the chore ( 1 + )... Bunch of radishes who worked full-time is $ 24,000 to suit your requirements taking. Per day, it receives a quantity discount on all units and pays opportunity cost practice problems with answers $ 175 per ton a as. Bread increases is she growing with flashcards, games, and more with flashcards,,. Buys three tons of aluminum per day, opportunity cost practice problems with answers receives a quantity discount on units! 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( D ) scarcity 28 units and pays only $ 175 per ton with. With the lower opportunity cost except:... B cost quizzes online, test your knowledge with cost... More with flashcards, games, and more with flashcards, games, and more with,. Online, test your knowledge with opportunity cost trivia quizzes can be adapted to suit your requirements for some... Quick sky trip opportunity cost practice problems with answers a quick sky trip ( a ) If Alison currently. The top opportunity cost of one bunch of radishes of opportunity cost quiz questions database opportunity. 175 per ton is not so important a problem as inflation ( c ) marginal cost ( D ) 28! * 12 175 per ton vocabulary, terms, and other study.!:... B total income of an 18-24 year old high school who! ) opportunity cost of one bunch of radishes four tons per day, it a..., how many radish bunches is she growing 200 per ton average total income of an 18-24 year old school. 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