Stephanie Has Decided to Eat Lunch Between Classes

question 321

Multiple Choice

Stephanie has decided to eat lunch between classes. She has ranked her choices, from highest to lowest as, (1) turkey sandwich, (2) tuna sandwich, (3) slice of cheese pizza, (4) cheeseburger. The opportunity cost of the eating turkey sandwich is

• A) the combined value of the tuna sandwich, slice of cheese pizza and cheeseburger.
• B) the value of tuna sandwich, the next best choice.
• C) the value of the cheeseburger.
• D) zero since she has satisfied a want.

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Definitions:

Comparative Advantage

The ability of an individual or group to produce a good or service at a lower opportunity cost than another.

Tractors

Vehicles specially designed to deliver high torque at low speeds, used mainly in the farming industry for agricultural purposes.

Crude Oil

A crude, naturally existing petroleum substance comprising hydrocarbon deposits and miscellaneous organic materials.

Opportunity Cost

The expense incurred from overlooking the next most favorable choice during a decision-making process.