Question : 51.You decide to drive your car a long road trip : 1378967

51.You decide to drive your car on a long road trip of 1,500 miles. The opportunity cost of driving your car:

A. is the amount of money spent on gas.

B. is zero because the car is paid for.

C. includes lost wages that you could have earned instead of driving.

D. None of these.

52.If Johnny weren’t in economics class this morning, he’d be sleeping. The value Johnny places on sleeping represents his:

A. marginal benefit.

B. incentives.

C. sunk cost.

D. opportunity cost.

53.Your sister always brags about how savvy of a grocery shopper she is. She believes that she saves lots of money from paying with coupons and making her grocery purchases at multiple stores to get the lowest prices on all goods. She may overestimate her savings because:

A. she does not count the value of the time it took to sort and clip coupons as a cost.

B. she does not count the cost of the gas used driving extra miles to multiple grocery stores.

C. she does not count the value of the extra time it takes standing in multiple lines at multiple stores, using multiple coupons, rather than a trip to one store with no coupons.

D. All of these.

54.In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:

A. the value of the gas that is no longer stolen.

B. not having to look outside for people waving at you to turn on the pump.

C. the revenue lost because people will “low ball” how much they think their tank will hold in an effort to avoid having to come back into the store to get change from overpayment.

D. a loss of snack sales because people are coming into the store to pay for gas before pumping versus after pumping.

55.The Federal Drug Administration slows the pace at which helpful medications reach the marketplace. The alternative of having the medication available to consumers earlier is an example of:

A. the opportunity cost of the Federal Drug Administration’s regulation.

B. how easy it is to identify and evaluate costs.

C. the marginal benefit of the Federal Drug Administration.

D. promoting consumer health.

56.Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin between the street festival and studying, but did not really consider working. The coin flip determined that you would stay home and study. The opportunity cost of the time spent studying includes:

A. the loss of $100 worth of wages and going to the street festival.

B. earning a high score on your midterm.

C. the benefit that could have been received at the street festival.

D. None of these.

57.Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:

A. the cost of parachute pants.

B. the savings from not purchasing red swimming trunks.

C. giving up the alternative of dressing like a lifeguard.

D. there is no opportunity cost because he attended the party either way.

58.A local fast-food restaurant mails out coupons for a free sandwich to every home in the community. The opportunity cost of redeeming the sandwich may include:

A. lost wages due to spending time in a long line instead of eating a Healthy Choice meal in your office.

B. not eating because you are on a “get fit for the summer” diet plan.

C. eating a “Tough Man’s Burger,” which is one of your favorite fast food options.

D. Any of these could be an opportunity cost, depending on which alternative would have been taken if you did not have a coupon for a free sandwich.

59.You are shopping at the local mall with an $80 gift certificate. Only three items catch your attention. The items include a Justin Bieber sheet set, a remote control helicopter, and an “Amazing Ab Belt.” You would be willing to give up $60 for the sheets, $70 for the belt, and $80 for the helicopter. Knowing this, you decide to purchase the helicopter. The opportunity cost of the helicopter was:

A. $130, the combined value of the alternatives forgone.

B. $80, the amount of the gift certificate spent.

C. $70, the value of the ab belt.

D. $60, the value of the sheets.

60.Cameron can spend the afternoon playing golf, driving his boat, or cleaning his house. Although he enjoys golf, he sometimes becomes frustrated when playing. He decides to enjoy a more relaxing afternoon on his boat. Cameron never thought about cleaning the house but did give golf some serious consideration. Cameron’s opportunity cost of taking his boat out was:

A. a dirty house.

B. the enjoyment he would have gotten from playing golf.

C. a dirty house and not playing golf.

D. enjoying a relaxing day on the lake.