Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 1, Problem 15AA
To determine

To analyze:The economic term used for jacket, when shoes are bought instead of jacket.

Expert Solution & Answer
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Explanation of Solution

Opportunity cost refers to the second best alternative sacrificed in order to prefer the best alternative.

If the jacket is sacrificed to buy the pair of shoes, jacket is considered as the next best alternative of shoes. Hence, it is called the opportunity cost in economic terms.

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