The reason that opportunity costs arise is that

Question 2 options:

	it guarantees behavior.
	people have limited wants.
	there are no alternative decisions that could be made.
	resources are scarce.

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You own the video game World of Warcraft. The opportunity cost of playing this game for the second time

Question 3 options:

	is zero.
	is one-half the cost of the game, as this is the second time you have played it.
	is the value of the alternative use of the time you spend playing the game.
	is the price of the game.

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Damien quits his $50,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decision?

Question 4 options:

	Zero, since he will no longer be earning a salary.
	Depends on the "going rate" for stay-at-home dads.
	At least $50,000.
	$25,000.

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According to the theory of , specialization and free trade will benefit all trade partners, even when some are absolutely more efficient producers than others.

Question 5 options:

	social equity
	total costs
	absolute advantage
	comparative advantage

Question 6

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Using all their resources, Kendrick can produce 2000 boats while Drake can produce 900 boats. Therefore, Kendrick .

Question 6 options:

	Doesn't has a comparative advantage in the production of boats.
	Has an absolute advantage in the production of boats.
	Has a comparative advantage in the production of boats.
	Experiences no opportunity costs in the production of boats.

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If to produce 1 car Gloria experiences an opportunity cost of 15 boots, and Jay experiences an opportunity cost of 20 boots. Which of the following is true?

Question 7 options:

	Gloria has a comparative advantage in car production.
	Gloria has an absolute advantage in car production.
	Gloria has a comparative advantage in boot production.
	Gloria has an absolute advantage in boot production.