Title: QUIZ: The Art of Decisionmaking Module
Course: Kelly's Copy and Export Course > Section: The Art of Decisionmaking Module

Q: Opportunity cost is
- only experienced when you don't have enough money.
- everything that you give up when you make a choice.
- nonexistent because, eventually, we can have everything we want.
- the value of the next-best alternative when a decision is made.
A: the value of the next-best alternative when a decision is made.
If right: That is correct!
If wrong: That is incorrect. Opportunity cost is the value of the next-best alternative when a decision is made.

Q: What might be on your list of alternatives when deciding what to do in an afternoon off?
- Paint a house, do laundry, wash a car
- Fly to Paris, go to the park, go shopping
- Go to the park, see a movie, do laundry
- Become fluent in Spanish, learn Karate, play baseball
A: Go to the park, see a movie, do laundry
If right: That is correct!
If wrong: That is incorrect. Your list of alternatives should contain only items that could be accomplished in an afternoon. You could go to the park, see a movie, or do laundry, but you couldn't fly to Paris, paint a house, become fluent in Spanish, or learn Karate in one afternoon.

Q: You had three invitations for this weekend: go hiking, go canoeing, and babysit your infant niece. You love the outdoors and do something physically active every chance you get. You chose to go canoeing. What was your opportunity cost?
- Hiking
- Babysitting
- Babysitting and camping
- Canoeing
A: Hiking
If right: That is correct!
If wrong: That is incorrect. Your opportunity cost was hiking. Canoeing was your choice. Babysitting was not a choice or an opportunity cost because caring for an infant is not very physically active, and you probably wouldn't be outdoors very much. Had you not chosen canoeing, you would have chosen hiking because you love the outdoors.

Q: The condition of scarcity exists because
- the resources we need are in other parts of the world.
- there aren't enough resources to produce everyone's wants.
- resources are too expensive.
- the government manages resources and doesn't provide for everyone's wants.
A: there aren't enough resources to produce everyone's wants.
If right: That is correct!
If wrong: That is incorrect. The condition of scarcity exists because there aren't enough resources to produce everyone's wants.

Q: The steps in the PACED decisionmaking model are
- define the problem, act on the problem, choose possible solutions, and execute the decision.
- define the problem, list alternatives, state criteria, evaluate alternatives, and make a decision.
- define the problem, list alternatives, choose possible solutions, evaluate alternatives, and make a decision.
- prepare the model, align the model, choose possible solutions, evaluate alternatives, and make a decision.
A: define the problem, list alternatives, state criteria, evaluate alternatives, and make a decision.
If right: That is correct!
If wrong: That is incorrect. The steps in the PACED decisionmaking model are define the problem, list alternatives, state criteria, evaluate alternatives, and make a decision.

Q: People can increase their ability to earn a higher wage rate by
- building skills that are scarce in the labor market.
- working more hours per week.
- reducing their time in education and jumping right into the labor market.
- working in a family business.
A: building skills that are scarce in the labor market.
If right: That is correct!
If wrong: That is incorrect. There are no guarantees, but in general, businesses are willing to pay more to get workers with the scarce skills the businesses need.

Q: The process of giving up a little of one thing to gain a little of another is referred to as a
- marginal cost.
- marginal benefit.
- trade-off.
- scarcity.
A: trade-off.
If right: That is correct!
If wrong: That is incorrect. The process of giving up a little of one thing to gain a little of another is referred to as a trade-off. Remember: It’s important to consider the costs and benefits of the trade-off decision.