📚 Learning Guide
Calculating Opportunity Costs
easy

If a student decides to spend the evening studying for an exam instead of going to a concert, what is the opportunity cost of their decision?

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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 enjoyment from attending the concert

C

The cost of the concert ticket

D

The time spent on studying

Understanding the Answer

Let's break down why this is correct

Answer

The opportunity cost of a decision is what you give up when you choose one option over another. In this case, if a student decides to study for an exam instead of going to a concert, the opportunity cost is the enjoyment and experience they would have had at the concert. This includes the fun of listening to live music, being with friends, and the excitement of the event. For example, if the concert was a favorite band performing only once, missing it means losing that special experience forever. So, while studying is important, it’s essential to understand what you are sacrificing by not attending the concert.

Detailed Explanation

The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the knowledge gained is the cost; The ticket price seems like a cost, but it’s already spent.

Key Concepts

opportunity cost
Topic

Calculating Opportunity Costs

Difficulty

easy level question

Cognitive Level

understand

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