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  3. problem set h3 sf19 name date total 100 points 4...

Question: problem set h3 sf19 name date total 100 points 4...

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PROBLEM SET H3 (S-F-19 Name: Date: Total: 100 POINTS (4 points each) 1) The opportunity cost of something is A) the cost of the labor used to produce it. B) what you sacrifice to get it. price charged for it D) the search cost required to find it 2) The principle of opportunity cost A) is more relevant for firms than for individuals. B) only refers to monetary payments. C) is only relevant in economics. D) is applicable to all decision-making. 3) The A) marginal principle. principle that the cost of something is equal to what is sacrificed to get it is known as the C) principle of diminishing returns. D) reality principle. 4) The saying that Theres no such thing as a free lunch refers to the A) marginal principle. B) spillover principle. C) principle of opportunity cost D) reality principle. 5) Jacinda quit her job as a blackjack dealer where she made $42,000 per year to start her own florist business. Her business expenses are $14,000 per year on rent, $21,000 per year on supplies, and $9,000 per year on part time help. As for her personal expenses, her apartment costs her S12,000 per year and her personal bills are an extra $6,000 per year. What is Jacindas opportunity cost of running the business? A) $104,000 B) $86,000 C) $62,000 D) $44,000 6) An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is A) the cost of bait and any other monetary expenses. B) zero, because the person doesnt have a job. C) the cost of bait, any other monetary expenses, and the value of the individuals wages while he D) the cost of bait, any other monetary expenses, and the value of the best alternative use of the individuals time. was working.
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