Author Question: The term opportunity cost suggests that a. in any exchange situation where one person gains, ... (Read 21 times)

ARLKQ · **on:** Jul 1, 2018

The term opportunity cost suggests that
a. in any exchange situation where one person gains, someone else must lose
b. not all individuals make the most of life's opportunities
c. executives do not always recognize opportunities for profit as quickly as they should
d. the only factor that is important in decision making is cost
e. because goods are scarce, in order to get some good you must give up some other good in return

Question 2

A test was scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following is true?
a. The opportunity cost of going to the movie is studying for the test.
b. The opportunity cost of going to the party is the movie.
c. The opportunity cost of going to the party is both the movie and the study time.
d. Because you could go to the party only that night but could go to a movie any time, the opportunity cost of the party is the study time.
e. From the above information, it's not possible to determine the opportunity cost of attending the party.