# Quiz 1 - 1 Opportunity cost is defined only in terms of...

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nly in terms of money spent 1. Opportunity cost is defined a. only in terms of money spent the value of all alternatives not chosen b. as the value of all alternatives not chosen the value of the best alternative 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 sts of that choice costs of that choice Answer : C

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2 . Suppose you have a choice of working full-time during e summer or going full me to summer school 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, a. \$2,200 therefore, b. \$7,000 c. \$8,000 d. \$9,200 10 200 e. \$10,200 Answer : B
3. The law of comparative advantage ays that Answer : A a. the individual with the lowest opportunity cost of

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## This note was uploaded on 08/30/2011 for the course ART 3514 taught by Professor Dhbannan during the Summer '03 term at Virginia Tech.

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Quiz 1 - 1 Opportunity cost is defined only in terms of...

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