ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$15000
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$40000
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None of the Above
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All of the above.
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Detailed explanation-1: -Why do we need to study economics? Recognize the scarcity of resources against unlimited wants. Economize on the use of resources and search for more efficient ways of using the resources.
Detailed explanation-2: -Opportunity Cost = Return on Most Profitable Investment Choice-Return on Investment Chosen to Pursue. Opportunity Cost = $80, 000 (selling ten cars worth $8, 000 each)-$60, 000 (selling 5 trucks worth $12, 000 each) Opportunity Cost = $20, 000.
Detailed explanation-3: -The study of economics helps people understand the world around them. It enables people to understand people, businesses, markets and governments, and therefore better respond to the threats and opportunities that emerge when things change.
Detailed explanation-4: -To study the Theory of Consumption. To study the Theory of Production. To study the Theory of Distribution. To study the basic macroeconomic problems faced by an economy.