GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$40
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New pair of jeans
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Trip to amusement park
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No opportunity cost was involved.
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Detailed explanation-1: -John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? No opportunity cost was involved.
Detailed explanation-2: -(i) Economic and Non-Economic Wants: The wants which cannot be satisfied by such goods and services that can be bought are known as economic wants. For example, want for food, want for book, want for dress etc.
Detailed explanation-3: -ExchangeDistribution examines how income is divided betweenproducers and resource ownersConsumers are typically most willing to pay more for goods and services that bring them greatersatisfactionTwo factors involved in determining the value of a resource, good, or service areavailability and demand.