Emelia has been invited to a sleep over at Chloes house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloes house. What is the opportunity cost of her decision?

OPPORTUNITY COST

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Emelia has been invited to a sleep over at Chloe’s house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe’s house. What is the opportunity cost of her decision?

A	seeing her favorite band
B	spending time at a friends house
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -The correct answer to the given question is option c) the value of your time, but not the price you pay for the ticket.

Detailed explanation-2: -The opportunity cost will be the time foregone spent at home instead of time for reaching the concert and then attending the concert and the time to reach home afterward.

Detailed explanation-3: -What are some other examples of opportunity cost? A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else.

Detailed explanation-4: -The correct answer is d) The money a student spends on rent for his apartment while attending school. The other options are alternatives to going to school. However, regardless of whether the student goes to school or not, they still have to pay rent on the place they live in. Therefore, that’s not an opportunity cost.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

OPPORTUNITY COST