Economics: Opportunity cost is – the money a business loses

Economics: Opportunity cost is – the money a business loses

Subject: Economics    / General Economics
Question

Opportunity cost is:

Question 1 options:

a. the money a business loses in a bad investment.

b. the value of the best foregone opportunity.

c. the price an individual pays for making a mistake.

d. the tuition costs when you pursue a college degree.

Which of the following is an example of fixed costs for a business?

Question 2 options:

a.hourly wages.

b.cost of business license.

c. fees for customer credit card charges.

d. gasoline for company vehicle.

Which of the following is an example of a command economy?

Question 3 options:

a. hunter-gatherer systems.

b. decisions by individuals to satisfy their own self-interest.

c. centralized decision-making by the Chinese government.

d. “sin taxes” on alcohol and tobacco.

Capitalist market systems

Question 4 options:

a. allow for substantial government ownership of key industries.

b. rely on market prices and individual decision-making to yield efficient outcomes.

c. do not allow a role of government in taxes and subsidies.

d. Is similar to socialism in that there is a gurantee that workers will have jobs.

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Which of these conditions does NOT characterize perfect competition?

Question 5 options:

a. a large number of buyers and sellers act independently.

b. firms produce identical products and are “price takers.”

c. information is “imperfect,” allowing individuals or firms to pay more for products than their costs of production.

d. individuals are motivated by self-interest, not societal welfare.