Scarcity and Opportunity Cost — Practice Set

A student with four free hours on Saturday chooses to study economics instead of working a shift that pays $15 per hour. The opportunity cost of studying is:

Which of the following best defines scarcity in economics?

A farmer can grow 100 bushels of wheat or 50 bushels of corn on the same land. The opportunity cost of producing 1 bushel of corn is:

An explicit cost differs from an implicit cost in that:

A bakery owner quits a $50,000-per-year job, invests$100,000 of savings (which earned 5% interest), and the bakery earns $180,000 in revenue with$100,000 in explicit costs. Economic profit is:

Comparative advantage means a person or country can produce a good:

Ana can make 6 pizzas or 12 salads per hour; Ben can make 4 pizzas or 4 salads per hour. Who has the comparative advantage in salads?

Which statement about trade is most consistent with the theory of comparative advantage?

A sunk cost should be ignored in decision-making because:

You already bought a $40 concert ticket that cannot be resold. Your next-best option for the evening is a freelance job paying$100. The economic cost of attending the concert is: