Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 1: Problem 3

Give an example to illustrate how a person may incur an opportunity cost without paying anyone any money.

Short Answer

Expert verified
An example could be choosing to spend an hour reading a book instead of exercising. Even though no money has been exchanged, there is an opportunity cost: the benefits of exercise that were given up for reading. This corresponds to an opportunity cost without any money transactions.

Step by step solution

01

Identify an everyday activity.

An everyday activity needs to be chosen first, as an opportunity cost can be found in almost any decision made in daily life.
02

Choose what to forego.

Once a certain activity is chosen, the next step is to identify what is being given up in favor of it.
03

Evaluate the opportunity cost.

Lastly, demonstrate how despite not spending a single cent, a cost is incurred due to the lost opportunity of not choosing another alternative.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

According to economists, almost everything we do has costs and benefits. Identify the costs and benefits of each of the following: going to the dentist for a checkup, doing your homework, and getting an extra hour of sleep.

Define the followingterms: a. scarcity b. opportunity cost c. economics d. want e. resource f. production possibilities frontier g. rationing device

Use marginal costs correctly in a sentence.

Explain how a PPF can be used to illustrate bothchoice and opportunity cost.

Entrepreneurship is sometimes the "forgotten resource." Why do you think it is easier to forget entrepreneurship than, say, labor or capital?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free