Question

1. Which of the following accurately explains why scarcity forces individuals and society to incur opportunity costs? A. Because of scarcity, people must make choices, and each choice incurs a cost. B. Scarcity forces a nation to accelerate economic growth by increasing its production of capital goods in excess of the capital being worn out in the production process. 2. Which of the following are examples of opportunity costs? A. The money spent on a movie ticket cannot buy a Blu-ray player.B. When a firm invested in a new on-site gym, more young people applied for jobs there.C. The time spent preparing for a test cannot be spent playing computer games.D. Purchasing a Blu-ray player results in a superior experience compared to watching a regular movie.

Answer 1

Answer:

explanation of opportunity cost:

A. Because of scarcity, people must make choices, and each choice incurs a cost

exampes of opportunity cost:

A. The money spent on a movie ticket cannot buy a Blu-ray player

C. The time spent preparing for a test cannot be spent playing computer games

Explanation:

The opportunity cost refers to the return or ouput of the resource used in the best alternative decision.

That means, the wages we get fro ma certain job most be compared with the wages we could do in another to really check if we are making a gain or not with our job.

Same applies for capital and other factors.