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DeAndre woke up extremely tired on Saturday morning. He really wanted to call off of work but knew he needed the money. He decided to get up and go to work. What is the opportunity cost in this scenario?

(a) The amount of money DeAndre would have earned by staying in bed and getting more sleep.
(b) The value of DeAndre's leisure time.
(c) The amount of money DeAndre would have saved by not going to work.
(d) The amount of money DeAndre would have earned by working overtime.

User KeyStroke
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1 Answer

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Final answer:

The opportunity cost in DeAndre's scenario is the value of his leisure time (option b), which he gave up in order to go to work.

Step-by-step explanation:

When DeAndre decides to get up and go to work despite feeling extremely tired, he is making an economic decision involving opportunity cost. Opportunity cost is defined as the most desirable alternative given up as the result of a decision. In this scenario, the opportunity cost would be the value of DeAndre's leisure time that he is forgoing in order to work — option (b). This is because, by choosing to go to work, DeAndre is giving up the next best alternative which is staying in bed to get more sleep and enjoying the rest and recuperation that it would provide.

A fundamental principle of economics is that every choice has an opportunity cost. For instance, if you decide to spend money on video games, you cannot spend that same money on movies. Similarly, for DeAndre, choosing to work implies he cannot choose at the same time to rest or engage in other leisure activities. His leisure time thus becomes the opportunity cost of his choice to work.

User Yogesh Nikam Patil
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