Why does opportunity cost vary answer

Answer: Because its expressed in relative price, and it price of one choice to the price of another. First Name. Your Response. How does opportunity cost affect people's wants and needs? It changes the supply and demand of goods. It requires them to make a choice. It requires them to be producers and consumers.

Opportunity cost does not impact. Caluating opportunity cost. Assume an interest rate of 3 percent. How much is the. Which term describes the choices that people must make to meet their wants and needs? In some cases, recognizing the opportunity cost can alter personal behavior.

Five dollars each day does not seem to be that much. Opportunity cost also comes into play with societal decisions. Universal health care would be nice, but the opportunity cost of such a decision would be less housing, environmental protection, or national defense.

These trade-offs also arise with government policies. For example, after the terrorist plane hijackings on September 11, , many proposals, such as the following, were made to improve air travel safety:.

According to the United States Department of Transportation, more than million passengers took plane trips in the United States in Say that, on average, each air passenger spends an extra 30 minutes in the airport per trip.

Economists commonly place a value on time to convert an opportunity cost in time into a monetary figure. Skip to Main Content Grade Updated: October 18 ,.

Author: Conor Irons. Teacher Version. Save Lesson Save. Introduction View Interactive Activity How many sodas can you buy instead of one movie ticket? Students should divide the price of a movie ticket by the price of a soda ] How many pieces of gum can you buy instead of one soda? Students should divide the price of gum by the price of a soda.

Students should multiply the price of gum by four which equals two, then divide two by the price of a soda which equals two. Learning Objectives Define opportunity cost. Determine the opportunity cost and trade-offs for certain decisions. Select criteria important for decision making. View Interactive Activity What is the opportunity cost of an unlimited edition Mewtwo in terms of other Pokemon cards?

Any combination of Pokemon cards that equals the price of the unlimited edition Mewtwo works as an answer. What is the opportunity cost of an unlimited edition Mewtwo in terms of movie tickets? When you made the choice to join a soccer team, you had to tradeoff missing that television show for becoming a better player Go to this Calvin and Hobbes website. View Interactive Activity In the first panel, what does Calvin want to do with the ball?

The opportunity cost of not being able to walk is greater than losing the game. Calvin surrenders the ball to Hobbes. Assessment All economic questions and problems arise from scarcity.