Assume that the opportunity cost of producing a pair of pants in the United States is 2 pounds of rice, while in China, it is 5 pounds of rice. $51,250... What economic concept is used to introduce the external rate of return? Intro Econs Chapter 2 Resource Utilisation. The cost of going to college is a major expense for many of us. a) Marginal rate of return b) Internal rate of return c) Opportunity cost d) Sunk cost. Suppose that you deciding between seeing a move and going to a concert on a particular Saturday evening. The tables show their production possibilities. The 3 acres differ in their ability to support orange trees. The opportunity cost of working for herself is A. c. downward-sloping demand. Suppose that Lo and Manuel can either run errands or wash dishes. Darnell lives in San Francisco and runs a business that sells pianos. Business . In one hour, Robinson can catch seven fish or harvest five coconuts. Hours Needed to Make 1 Amount Produced in 40 Hours mixer toaster mixers toasters Maya 8... Profits and the shut down decision. Costs and Production Methods. Which costs may normally be ignored when determining whether to close a factory for a short period? C. neither its explicit costs nor its implicit costs. A severe thunderstorm on the night of the concert makes driving hazardous. Solution for The opportunity cost of holding money is the Multiple Choice nominal interest rate. C) "payments" for self-employed resources. Multiple-choice questions Try the multiple choice questions below to test your knowledge of this chapter. Master in Business Management (MBA111) Uploaded by. 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? This is the currently selected item. Test your understanding of Opportunity cost concepts with Study.com's quick multiple choice quizzes. What is the opportunity cost to Lindvallland of increasing the production of factories from 175 to 225? What is correct about __opportunity cost__? a. B) both wants and resources are unlimited. Further, during the term, you can only work part-time and... Al can make 10 chocolates and 5 candies a year and Betty can make 30 chocolates and 10 candies a year. If the opportunity cost for leisure is wages, then is the opportunity cost for work leisure? All Questions. Give examples. What would the production possibilities curve actually mean? Chandler takes four hours to bake 1 loaf of br... Isaac has four potential jobs to consider, each with different salary offers. Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. What is opportunity cost? The company's projected impact on the local economy is estimated to be $20 million. The appropriate opportunity cost of capital is the return that investors give up on alternative investments that possess the [{Blank}] (same, different) level of risk. 1) 2) The fundamental issue of economics is to A) prove that market systems are superior to socialist systems. Opportunity cost is equal to implicit costs plus explicit costs. The highest-valued alternative that must be given up to engage in an activity is the definition of _____. 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. A cost incurred in the past that cannot be changed by any future action is: The opportunity cost of buying Abba's greatest hits on an online store (such as iTunes) is A. II. What is the opportunity cost of making cars in South Korea? A. Suppose you were considering taking a summer job to earn additional spending money for school. Explain why or why not. Vocab . 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