Figure 2-1

-Figure 2-1 illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time.What is the opportunity cost for this person of moving from point b to point a?

Question

Figure 2-1
 
-Figure 2-1 illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time.What is the opportunity cost for this person of moving from point b to point a?

Quizplus · Accepted Answer

The opportunity cost is the value of the next-best alternative that must be given up in order to pursue the chosen option. In this case, moving from point b to point a means spending two hours more per week on studying and two hours less per week on working part-time. Therefore, the opportunity cost of this decision is the income that could have been earned in those two hours of work, which is equal to $10. Thus, the correct answer is C: two hours of studying per week.

Figure 2-1 -Figure 2-1 Illustrates the Trade-Off for a Particular Student Between