What is the opportunity cost (in dollars) to attend an hour-long econ lecture for A minimum-wage teenager in fall 2009?
What is the opportunity cost (in dollars) to attend an hour-long econ lecture for A $160,000 per year corporate executive who works 2,000 hours per year?
7.25
80
To calculate the opportunity cost of attending an hour-long econ lecture for a minimum-wage teenager in Fall 2009, we need to consider a few factors:
1. Minimum wage in Fall 2009: First, we need to determine the minimum wage during that time. The federal minimum wage in the United States was $7.25 per hour in 2009.
2. Working hours: Next, we need to determine if the teenager would have been working during that hour if they hadn't attended the lecture. If they were scheduled to work and had to miss it due to attending the lecture, we would consider this as an opportunity cost.
3. Other factors to consider: Other potential opportunity costs could include time spent on alternative activities, such as studying, working on assignments, or engaging in leisure activities.
If the teenager was scheduled to work during the hour-long econ lecture, we can calculate the opportunity cost by multiplying the hourly minimum wage by the number of hours missed. In this case, if the teenager was scheduled to work for that hour, the opportunity cost would be $7.25.
However, if the teenager had other alternatives or activities they could have engaged in during that hour, calculating the specific dollar value of the opportunity cost becomes more complex and subjective. It would depend on the value the teenager places on each activity and their personal circumstances.