Scarcity and Opportunity Cost : Mastery Test (PLATO / Edmentum)

Nick has been hired as the marketing director of a sporting goods manufacturing company. Classify his new job incentives as monetary or nonmonetary.

Monetary = salary, commission, stock Nonmonetary = reduced, flexible, friendly

A start-up company just acquired a big project. The project requires a lot of money. The company must hold off on building its new office to complete the project. What was the reason for the company's decision?

The marginal benefit of completing the project outweighs the marginal cost of the project.

What is an incentive?

a gesture or a reward to increase productivity or motivation

What represents the value of the second-best alternative that a person gives up when making a choice?

opportunity cost

What is the opportunity cost in this scenario? Mikael has saved $4,000 for his trip to Brazil.

sightseeing