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QQ: opportunity costs
An opportunity cost is what you sacrifice by choosing one option or pursuing one endeavor over another. It’s one of the most basic principles of economics and here’s a little quiz from a book I’m reading, The Economic Naturalist, that tests your knowledge. (Explanation to come..)
Suppose you’ve won a free ticket to see an Eric Clapton concert tonight and you can’t resell it. You have no set plans tonight, but were considering attending a Bob Dylan concert. A ticket for tonight’s Dylan concert costs $40, but on any given day you would be willing to spend $50 to see him perform (that is, if the Dylan ticket costs more than $50, you’d pass up the concert). There is no other cost associated with seeing either performer. What’s your opportunity cost of attending the Clapton concert?
Choices: a. $0, b. $10, c. $40, d. $50
Note: Only 21.6% of professional economists (200 surveyed in 2005) chose the right answer.
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heyitseszter reblogged this from dihard
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johncarney reblogged this from zackchristenson and added:
An opportunity cost is what you sacrifice by choosing one option or pursuing one endeavor over another. It’s one of the...
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zackchristenson reblogged this from dihard and added:
I think it’s A. $0. Because you’re not giving anything up...Clapton, it’s almost as
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jairustonel reblogged this from dihard
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biteofpythias reblogged this from dihard and added:
OMG that’s awesome; their knowledge actually worked against them...they did WORSE THAN...
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fuckinnerd reblogged this from dihard and added:
I think it’s B....is worth $50 to you,...$40. Meaning you...
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getlara reblogged this from dihard
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brandonthegreat reblogged this from dihard
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joojoobee reblogged this from dihard and added:
b) $10, because I save $10...concert since my reserve price
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blahcetera reblogged this from dihard and added:
change in majors) since econ,...I think the answer is (d): $50. Is that right? If I...
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