ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Playing softball
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Working
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Being with her friends
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There is no opportunity cost because she spends no money
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Detailed explanation-1: -She cannot do both, so she decides to play softball. What is her opportunity cost? making a trade-off.
Detailed explanation-2: -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-3: -The opportunity cost of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.
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.
Detailed explanation-5: -The opportunity cost of an action is what you must give up when you make that choice. Another way to say this is: it is the value of the next best opportunity. Opportunity cost is a direct implication of scarcity.