Opportunity cost and ppc

Which of the following best defines opportunity cost?

• The amount of money spent on a product.

• The benefit of the next best alternative that is foregone.

• The total cost of producing goods.

• The resources used in production.

If a company uses its resources to produce 100 cars instead of 200 motorcycles, what is the opportunity cost of producing the cars?

• 100 cars

• 200 motorcycles

• Both 100 cars and 200 motorcycles

• There is no opportunity cost

What does a point on the PPC curve represent?

• Inefficient use of resources

• Maximum production with given resources

• Unattainable production level

• Economic growth

What happens when an economy is operating inside its Production Possibility Curve (PPC)?

• All resources are being used efficiently.

• There are unused or underutilized resources.

• The opportunity cost is zero.

• The economy is producing at its maximum capacity.

If producing one computer costs the opportunity of producing three phones, what is the opportunity cost of producing 5 computers?

• 15 phones

• 10 phones

• 5 phones

• 3 phones