Question

I am thinking about going out to visit with some friends tonight. Given what I have learned in economics, I am comparing my costs with my expected benefits. My alternatives in order of preference are to stay in my room and watch TV; stay in my room and study economics; have my friends over to my room; or go to bed early tonight. What are the costs relevant to my decision?

a. The benefits gained from going out to visit some friends
b. The benefits gained from staying in my room and watching TV
c. The benefits gained from watching TV, studying economics, having my friends over, and going to bed early
d. The benefits gained from one or two of the alternatives, but not all of them
e. None of the above is correct

Answer 1

The costs relevant to your decision are the expenses or sacrifices associated with each alternative.

Step-by-step explanation:

The costs relevant to your decision are the expenses or sacrifices associated with each alternative. In this case, the costs would include:

1. The cost of going out to visit your friends, which could include transportation costs, expenses for food or activities, and the time spent away from other tasks.
2. The cost of staying in your room and watching TV, which could include the opportunity cost of not studying economics or spending time with friends.
3. The cost of studying economics, which could include the time and effort spent on studying instead of engaging in other activities.
4. The cost of having your friends over to your room, which could include the expenses for food or entertainment, and the time spent hosting and cleaning up.
5. The cost of going to bed early, which could include the missed opportunity to spend time with friends or engage in leisure activities.