ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Go to work
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Go to a football game
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Go to a friend’s house
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Go home and sleep
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Detailed explanation-1: -Opportunity cost is a concept in Economics that is defined as those values or benefits that are lost by a business, business owners or organisations when they choose one option or an alternative option over another option, in the course of making business decisions.
Detailed explanation-2: -Principle #2: The cost of something is what you give up to get it. example: College education. The benefits are the job opportunities and personal satisfaction, but there are costs besides “out of pocket” costs like tuition and books.
Detailed explanation-3: -The concept of opportunity cost was first developed by Professor Friedrich von Wieser (1914), a member of the Austrian School of Economics who exercised a strong influence on economists such as von Mises, Hayeck, or Schumpeter, the next generation of Austrian economists.
Detailed explanation-4: -A student spends three hours and $20 at the movies the night before an exam. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment). A commuter takes the train to work instead of driving. 29-Jan-2020