Opportunity cost is defined
a. only in terms of money spent
b. as the value of all alternatives not chosen
c. as the value of the best alternative not chosen
d. as the difference between the benefits from a choice and the benefits from the next best alternative
e. as the difference between the benefits from a choice and the costs of that choice
QUESTION 2The Sultan of Brunei, one of the world's richest people, does not face the problem of scarcity.
a. True
b. False
QUESTION 3A rational decision maker engages in an activity if that activity is more attractive than the best alternative.
a. True
b. False
QUESTION 4Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services.
a. True
b. False
QUESTION 5Opportunity cost is the difference between the benefits and the costs of a choice.
a. True
b. False
QUESTION 6Opportunity cost exists because
a. technology is fixed at any point in time
b. the law of comparative advantage is working
c. resources are scarce but wants are unlimited
d. the value of lost opportunities varies from person to person
e. efficiency is measured by the monetary cost of an activity
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