Question

Manuel is training for a triathlon, a timed race that combines swimming, biking, and running.Consider the following sentence: In order to swim for an hour, Manuel must take time away from work, where he earns $12 per hour. This is in addition to paying a $4 entrance fee for the pool.Which basic principle of individual choice do these statements best illustrate?1) The cost of something is what you give up to get it2) Markets are usually a good way to organize economic activity3) People usually exploit opportunities to make themselves better off.4) Trade can make everyone better off

Answer 1

1) The cost of something is what you give up to get it

Step-by-step explanation:

Choices have an opportunity cost. If Manuel decides to swim he won't be able to go biking, running or working. The most efficient choice is doing always the highest valued alternative so the opportunity cost (that what is sacrificed) will have a lower value than the option chosen.