Question

Opportunity costs are a large factor in individual decision-making. Please sort the statements according to whether or not they have an opportunity cost.

Has an opportunity cost
Having a "lazy afternoon"
Working an 8 hour shift
Cooking dinner
Eating out
Reading you favorite book
Catching up with an old friend
Does not have an opportunity cost
Nothing

Answer 1

Has an opportunity cost

• Having a "lazy afternoon" VS Working an 8 hour shift VS
• Cooking dinner VS Eating out
• Reading you favorite book VS Catching up with an old friend

Step-by-step explanation:

Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every activity that you carry out includes the opportunity cost of not doing something else. No matter what we do, we could be doing something else.