TABLE 1-1

-Refer to Table 1-1. A student has only a few hours to prepare for two different exams this afternoon. The above table shows alternative possible exam scores with three alternative uses of the student's time. What is the opportunity cost of scoring a 94 on the economics exam rather than a 77?
A) 8 points on the history exam
B) 14 points on the history exam
C) 15 points on the history exam
D) 17 points on the history exam

Question

TABLE 1-1
 
-Refer to Table 1-1. A student has only a few hours to prepare for two different exams this afternoon. The above table shows alternative possible exam scores with three alternative uses of the student's time. What is the opportunity cost of scoring a 94 on the economics exam rather than a 77?
A) 8 points on the history exam 
B) 14 points on the history exam 
C) 15 points on the history exam 
D) 17 points on the history exam

Quizplus · Accepted Answer

The opportunity cost of an action is what you have to give up to take that action. In this case, to increase the economics exam score from 77 to 94, the student gives up the difference in history exam scores associated with those economics scores. Without the specific numbers from Table 1-1, the correct answer is based on the principle that the opportunity cost is the foregone score on the history exam, which is indicated as 15 points in option C.

TABLE 1-1 -Refer to Table 1-1. a Student Has Only a Few