ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A person decides to go to the university for three years, to study economics. If he had not gone, he could have taken up a job which would paid him $15 000 a year. After he graduates, he expects to find a job paying him $40 000 a year. What is the opportunity cost of going to the university for him?
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$45 000
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$15 000
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$40 000
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$120 000
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Explanation:
Detailed explanation-1: -Understanding how decisions are made, how markets work, how rules affect outcomes, and how economic forces drive social systems will equip people to make better decisions and solve more problems. This translates to success in work and in life.
Detailed explanation-2: -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-3: -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.
There is 1 question to complete.