Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision
Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this comment correct?
Your roommates' comment is incorrect. The opportunity cost of preparing dinner at home is whatever is the best thing you give up, which, given your choice boiled down to staying home or going out, is going out to eat. Hence the opportunity cost of fixing dinner at home is going out to eat.
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A) A temporary tax cut to boost consumption B) A decrease in money supply to lower the federal funds rate C) A decrease in transfer payments to unemployed workers D) An increase in tax rates to increase revenue
Refer to Figure 7-2. At the market equilibrium
A) the marginal cost is less than the marginal benefit. B) the marginal cost is greater than the marginal benefit. C) the marginal cost is equal to the marginal benefit. D) the marginal cost is zero.
A recession can best be defined as a period of time in which
a. total output of the economy falls. b. total output of the economy rises very slowly. c. total unemployment falls. d. total international trade fails to rise. e. Both a and c
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a. income and expenditures. b. sale of goods and services abroad and purchase of foreign goods and services. c. sale of domestic assets abroad and purchase of foreign assets. d. All of the above are correct.