📚 Learning Guide
Calculating Opportunity Costs
easy

If a student decides to spend an hour studying economics instead of working at a part-time job, what is the opportunity cost of studying?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

The knowledge gained from studying

B

The money they could have earned at the job

C

The time spent studying

D

The cost of textbooks

Understanding the Answer

Let's break down why this is correct

Answer

The opportunity cost of studying economics for an hour is what the student gives up by not working during that time. In this case, it could be the amount of money they would have earned at their part-time job. For example, if the student makes $15 an hour at their job, then the opportunity cost of studying for that hour is $15. This means that while studying is valuable for gaining knowledge, it also has a cost in terms of lost income. Understanding opportunity cost helps students make better choices about how to spend their time.

Detailed Explanation

Opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the knowledge is the cost, but it's actually the benefit; Time is not the cost here; it's what you could have done with that time.

Key Concepts

scarcity
Topic

Calculating Opportunity Costs

Difficulty

easy level question

Cognitive Level

understand

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