Table 2-1 shows possible exam scores with three alternative uses of a student's time. The student has only a few hours to prepare for two different exams in one afternoon. The opportunity cost of scoring a 94 on the economics exam rather than a 77 is a reduction of:Table 2-1
A)8 points on the history exam.
B)15 points on the history exam.
C)76 points on the history exam.
D)91 points on the history exam.
E)17 points on the history exam.

Question

Table 2-1 shows possible exam scores with three alternative uses of a student's time. The student has only a few hours to prepare for two different exams in one afternoon. The opportunity cost of scoring a 94 on the economics exam rather than a 77 is a reduction of:Table 2-1 
A)8 points on the history exam. 
B)15 points on the history exam. 
C)76 points on the history exam. 
D)91 points on the history exam. 
E)17 points on the history exam.

Quizplus · Accepted Answer

Looking at the table, we can see that the opportunity cost of scoring a 94 instead of a 77 on the economics exam is giving up 15 points on the history exam. Therefore, the best choice is to spend the limited time preparing for the history exam and aim for a higher score to make up for the potential loss of points on the economics exam.

Table 2-1 Shows Possible Exam Scores with Three Alternative Uses