A Test Is Scheduled for Monday Morning,and You Went to a Party

question 33

Multiple Choice

A test is scheduled for Monday morning,and you went to a party on Sunday 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 regarding your opportunity cost?

• A)The opportunity cost of going to the movie is studying for the test.
• B)The opportunity cost of going to the party is watching the movie.
• C)The opportunity cost of going to the party is both watching 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.

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Definitions:

Product Price

The monetary value assigned to a good or service for sale.

Total Output

The aggregate amount of goods and services produced by an economy over a specific time period.

Marginal Revenue Product

The increased earnings obtained from utilizing an extra unit of an element, such as labor or capital.

Input

refers to the resources, materials, or labor used in the production of goods and services.