Suppose You Find R450

question 48

Multiple Choice

Suppose you find R450.If you choose to use the R450 to go to a rugby match, your opportunity cost of going to the game is

• A)nothing, because you found the money.
• B)R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game.
• C)R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game.
• D)R450 (because you could have used the R450 to buy other things).
• E)none of these answers.

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Definitions:

Daily Demand

The total amount of a good or service that consumers are willing and able to purchase at a particular price in a single day.

Tax

A necessary financial obligation or variant form of imposition placed upon a taxpayer by a governing institution aimed at generating income for government use and public expense funding.

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Daily Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price on any given day.