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262-test

Created by

Farhad Key
Farhad Key
Iran

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by Farhad Key
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economics cost acquiring alternatives notion involve been scarcity better notion

Opportunity cost incorporates the of : No matter what we do , there is always a trade - off . We must trade off one thing for another because resources are limited and can be used in different ways . By something , we use up resources that could have used to acquire something else . The of opportunity cost allows us to measure this trade - off . The opportunity cost of something is what you sacrifice to get it . Most decisions several alternatives . For example , if you spend an hour studying for an exam , you have one less hour to pursue other activities . To determine the opportunity of an activity , we look at what you consider the best of these " other " activities . For example , suppose the to studying economics are studying for a history exam or working in a job that pays $10 per hour . If you consider studying for history a use of your time than working , then the opportunity cost of studying economics is the 4 extra points you could have received on a history exam if you studied history instead of economics . Alternatively , if working is the best alternative , the opportunity cost of studying economics is the $10 you could have earned instead .

 
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