ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the cost of the course fees at the college
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the increase in job opportunities she will have as a result of her extra qualifications
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the lost production due to her not being in work
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the money she would have earned if she had been in work for the two years
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Detailed explanation-1: -The opportunity cost of a choice is the value of the best alternative given up. Choices involve trading off the expected value of one opportunity against the expected value of its best alternative. The evaluation of choices and opportunity costs is subjective; such evaluations differ across individuals and societies.
Detailed explanation-2: -Opportunity Cost The scarcity of resources means that there are not sufficient goods and services to satisfy all our needs and wants; we are forced to choose some over the others. Choice is necessary because these resources have alternative uses-they can be used to produce many things.
Detailed explanation-3: -Opportunity cost and the economic problem The economic problem can be illustrated with the concept of opportunity cost. If a student spends three years in education, the opportunity cost is the lost potential of earning from a full-time job. A government may have choices on how to spend limited resources.
Detailed explanation-4: -Because of scarcity, every time we do one thing we necessarily have to forgo doing something else desirable. So there is an opportunity cost to everything we do, and that cost is expressed in terms of the most valuable alternative that is sacrificed….