Question

Which would be an example of an opportunity cost? a.)buying a computer to help get better grades in school b.)buying a movie ticket c.) the price of gasoline for a family trip d.not being able to afford a family trip because the family buys a computer

Answer 1

The right answer is the letter D.

This is because opportunity cost is a term used in economics to indicate the cost of something in terms of a given opportunity, that is, the cost, even social, caused by the renunciation of the economic entity, as well as the benefits that could be obtained from this resigned opportunity or, even, the highest income generated in some alternative application.

In the case of the matter, there was a waiver on the opportunity to pay for a family trip, so that the family could buy a computer.

Answer 2

The example of an opportunity cost is not being able to afford a family trip because the family buys a computer. What it means by opportunity cost is “the cost of something in terms of a given opportunity.”

 

EXPLANATION:  

Opportunity cost means the benefits that a person, could be a businessman, investor, or common individual like students, misses out or sacrifices when choosing one choice of alternative over the other ones. In life, there must be something we have to let go when we choose to take the other choice. In economics, the thing we let it goes is called an opportunity cost. The cost that we have to pay when we don’t take that choice because we choose to take the other choices.  

In this question, the opportunity cost is not being able to afford a family trip because the family buys a computer. An individual might be able to afford a family trip if only the family doesn’t buy a new computer. The opportunity cost might also be not being able to buy a computer because the family affords a family trip if the other choice is taken.

Sometimes people misunderstand what is called opportunity cost and risk. The key difference is on the actual performance. Opportunity cost compares the actual performances of an investment against the actual performance of different investment while risk compares the actual performances of the same investment. Opportunity cost compares two different choices (afford the family trip or buy a new computer) while risk compares the same choices (buy computer type A or type B).  

LEARN MORE:  

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

1. What is the opportunity cost of saving money to purchase a car? brainly.com/question/3132208  

2. Which of the following is an example of thinking at the margin? brainly.com/question/2178717  

KEYWORDS: opportunity cost, margin, example of opportunity cost  

Subject: English

Class: 10-12

Sub-chapter: Opportunity cost