(Table: Fazio and Gabriella's opportunity cost) The table provides data on how long it takes Fazio and Gabriella each to learn to play a particular new song on the piano and to complete a given person's tax return. Use the data to answer the question.
Fazio's opportunity cost of completing tax returns is _____, and Gabriella's opportunity cost is _____.

Question

Quizplus · Accepted Answer

To find opportunity cost, we need to look at the trade-off between learning a new song and completing a tax return for each individual. Fazio takes 4 hours to complete a tax return, while Gabriella takes 5 hours. Meanwhile, Fazio takes 2 hours to learn a new song, while Gabriella takes 4 hours.

For Fazio, the opportunity cost of completing one tax return is the value of what he gives up to complete that tax return, which is 2 hours of practicing piano. So his opportunity cost is .5 of a new song learned (2 hours/4 hours per new song = .5 new songs).

For Gabriella, the opportunity cost of completing one tax return is the value of what she gives up to complete that tax return, which is 4 hours of practicing piano. So her opportunity cost is .8 of a new song learned (4 hours/5 hours per new song = .8 new songs).

Therefore, the answer is B.

(Table: Fazio and Gabriella's Opportunity Cost) the Table Provides Data