Mid term 1 (1-3) - Exam Name MULTIPLE CHOICE Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When a choice is made, we call the value of the best alternative choice the 1) A) marginal cost. B) marginal choice. C) monetary cost. D) marginal benefit. E) opportunity cost. 2) Which one of the following is a part of the opportunity cost of attending college for an individual who lives on their own? 2) 3) During the next hour John can choose one of the following three activities: playing basketball, watching television, or reading a book. The opportunity cost of reading a book 3) A) is the value of playing basketball if John prefers that to watching television. B) depends on how much the book cost when it was purchased. C) is the value of playing basketball and the value of watching television. D) is the value of watching television if John prefers playing basketball to watching television. E) depends on how much John enjoys the book. 4) A welder makes $20 an hour. He must take two hours off work (with pay) to go to the dentist to have a tooth extracted. The dentist charges $100. The opportunity cost of the welder's trip to the dentist is 4) 5) When the government of Alberta chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of 5) 6) Which one of the following is a necessary consequence of scarcity? 6) A) the requirement of making choices B) all wants are satisfied C) low profits D) high profits E) no choices required 1
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7) The opportunity cost to a customer for getting a $10 haircut is the 7) 8) Harrison makes $30 an hour as a plumber. He must take two hours off work to have a tooth extracted, but his contract specifies the firm still pays him. The dentist charges $80. The opportunity cost to the firm of Harrison's trip to the dentist is 8)
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