Karmin wants to clean her house, finish her economics problem set, write her English essay, and spend time with her boyfriend. However, she only has time to choose one of these activities.Karmin chooses to finish her economics problem set. Hence, the opportunity cost of finishing her economics problem set is__? (possible answers are:spending time with boyfriend, writing essay, clean house, or unknown given this info)

Question

Karmin wants to clean her house, finish her economics problem set, write her English essay, and spend time with her boyfriend. However, she only has time to choose one of these activities.Karmin chooses to finish her economics problem set. Hence, the opportunity cost of finishing her economics problem set is__? (possible answers are:spending time with boyfriend, writing essay, clean house, or unknown given this info)

What do you think the best answer is? Why?

I THINK ITS UNKNOWN!!???

My answer would be "all of the above." But since this isn't one of your options, then "unknown" may be the best answer.

Given there is no data on how Karmin values her alternatives relative to each other, Unknown would be correct.

Answer 1

The correct answer is actually "spending time with her boyfriend." The opportunity cost represents the value of the next best alternative that is forgone when making a choice. In this scenario, Karmin had to choose one activity out of cleaning her house, finishing her economics problem set, writing her English essay, and spending time with her boyfriend. Since she chose to finish her economics problem set, the opportunity cost is the value of spending time with her boyfriend, as she is sacrificing that activity to complete her homework.