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Subject Economics
Pls help

Subject Economics Pls help-example-1
User Stojke
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1 Answer

3 votes

Answer:

Example

Step-by-step explanation:

1. Option #1: hang out with my friend; Option #2: study for a test; Option #3: go shopping

2. I chose to *hang out with my friend* and my opportunity cost of that decision was that I did not get to *study for a test*

3. There would still be an opportunity cost because by hanging out with a friend, I lost the time to study for my test. Opportunity cost means losing potential gain because one alternative was chosen over other alternatives. In this instance, I could not gain the knowledge of the test because I was instead strengthening my friendship. Although no money was involved, there was still the cost of not studying.

User Olejs
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