📚 Learning Guide
Calculating Opportunity Costs
easy

Maria can either spend her Saturday working at a local café earning $100 or volunteering at an animal shelter where she will not earn any money. If she chooses to volunteer, what is the opportunity cost of her decision?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

$100, which is the money she could have earned at the café

B

The experience and satisfaction from volunteering

C

The time spent volunteering instead of relaxing at home

D

The skills she could learn at the café

Understanding the Answer

Let's break down why this is correct

Answer

Opportunity cost is the value of what you give up when you make a choice. In Maria's case, if she decides to volunteer at the animal shelter instead of working at the café, she is giving up the $100 she could have earned. This means the opportunity cost of volunteering is $100, as that is the money she could have made if she had chosen to work. By understanding opportunity cost, Maria can better evaluate her options and make a decision that aligns with her goals and values. For example, if she values helping animals more than earning money, she might feel that the opportunity cost is worth it.

Detailed Explanation

The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the good feelings from volunteering are the cost; People might confuse time with money.

Key Concepts

Opportunity Costs
Choice and Trade-offs
Resource Allocation
Topic

Calculating Opportunity Costs

Difficulty

easy level question

Cognitive Level

understand

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