GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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I should buy a book rather than a food
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If I buy a computer, I must do without a 35” television
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If I spend a lot now means I will spend more in the future
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If I study today, I must give up going to the football game
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Detailed explanation-1: -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). A commuter takes the train to work instead of driving.
Detailed explanation-2: -Example #3 – Vacation Versus Training So, if you go on vacation, then your opportunity cost will be missing the training session, and if you stay for training, then your opportunity cost will be enjoying the vacation.
Detailed explanation-3: -What Is Opportunity Cost? Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.