Chapter 1, Problem 2P

To determine

To describe:

some of the opportunity costs when you decide to do the following activities.

1. Attend collage instead of taking a job
2. Watch a movie instead of studying for an exam.
3. Ride the bus instead of driving your car.

Concept Introduction:

Opportunity cost: The opportunity cost is defined as the next best activity forgone. This means that if we have to produce more capital goods instead of consumer goods we have to divert more resources for producing capital goods, so there is an opportunity cost for producing more capital goods instead of consumer goods.