Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are 2,200 . If you worked, you could make 7,000 . Your rent is 1,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is, therefore,
a. 2,200
b. 7,000
c. 8,000
d. 9,200
e. 10,200
QUESTION 2The opportunity cost of going to college is best measured by the
a. cost of room and board
b. cost of tuition
c. cost of room and board plus tuition
d. income forgone by not working, plus tuition
e. income forgone by not working, plus tuition and room and board
QUESTION 3The opportunity cost of college is the same for all students who are receiving full-tuition scholarships.
a. True
b. False
QUESTION 4Your opportunity cost of choosing a particular activity
a. can be easily and accurately calculated
b. cannot even be estimated
c. does not change over time
d. varies, depending on time and circumstances
e. is measured by the money you spend on the activity
QUESTION 5The opportunity cost of an activity
a. depends on the individual's subjective values and opinions
b. is the same for everyone
c. must be calculated and known before undertaking that activity
d. is irrelevant to decision making
e. is not related to time
QUESTION 6The opportunity cost of an activity is
a. zero if you choose the activity voluntarily
b. the amount of money spent on the activity
c. the value of the best alternative not chosen
d. the sum of benefits from all of the sacrificed alternatives
e. the difference between the benefits and the costs of that activity
QUESTION 7Suppose you have an hour before your next class starts. You can either read a book, get something to eat, or take a nap. The opportunity cost of getting something to eat is
a. the cost of what you eat
b. the value of reading and sleeping
c. the loss of value from not reading or sleeping
d. the net benefit of sleeping for another hour
e. impossible to determine because the most preferred alternative is not known
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