Question

Which of the following accurately explains why scarcity forces individuals and society to incur opportunity costs?

a. Because of scarcity, people must make choices, and each choice incurs a cost.

b. Scarcity forces a nation to accelerate economic growth by increasing its production of capital goods in excess of the capital being worn out in the production process.

Which of the following are examples of opportunity costs? Check all that apply.

a. The money spent on a movie ticket cannot buy a Blu-ray player.

b. When a firm invested in a new on-site gym, more young people applied for jobs there.

c. The time spent preparing for a test cannot be spent playing computer games.

d. Purchasing a Blu-ray player results in a superior experience compared to watching a regular movie.

Suppose a retailer promotes its store by advertising a drawing for a “free” car.

True or False: This car is not free because although the winner pays zero for it, he or she still gives up time and effort to participate in the drawing.

True or False: A decision to use an undeveloped lot in Tokyo’s financial district for an apartment building has a higher opportunity cost than using a square mile in the desert for a gas station.

Answer 1

Q1) option A)

Because of scarcity, people must make choices, and each choice incurs a cost.

Q2) option a & C

The time spent preparing for a test cannot be spent playing computer games.

The money spent on a movie ticket cannot buy a Blu-ray player.

Q3) true

opportunity cost is involved in drawing, hence it's not free in Economic terms

Q4) true

land value is higher in Tokyo financial district

Whereas desert land has relatively low value