ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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vacation
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swimming pool
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Either A or B
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None of the above
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Detailed explanation-1: -Opportunity cost, explained The value of the vacation you could have taken with the same amount of money would be the opportunity cost if you decide to buy the laptop. Similarly, if you decide to take the vacation, the opportunity cost would be the laptop you could have purchased with the same amount of money.
Detailed explanation-2: -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. 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).
Detailed explanation-3: -Answer and Explanation: Of the given statements about opportunity costs, (a) III only is TRUE. I. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.
Detailed explanation-4: -The items included to calculate the opportunity cost of a vacation to Disney world includes the monetary costs of travelling and shopping and the value of time spent.