BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?
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$40
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New pair of jeans
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Trip to amusement park
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No opportunity cost was involved.
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Explanation:
Detailed explanation-1: -John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? No opportunity cost was involved.
Detailed explanation-2: -Something you choose to buy is an opportunity cost.
Detailed explanation-3: -Why are resources considered limited? Everyone has them, and they change. There are not enough available for everyone to have as much of them as desired. Entrepreneurs do not invest enough of them.
There is 1 question to complete.