Your Friend Is Preparing for This Exam and in Your

question 453

Essay

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

---

Definitions:

Legally Binding

A contract or agreement that is enforceable by law, obligating parties to fulfill their commitments.

Bilateral Contract

A type of contract that arises when a promise is given in exchange for a promise.

Payment of Funds

The act of transferring money from one party to another as a form of compensation or fulfillment of an obligation.

Moral Obligations

Duties that arise from ethical principles rather than legal requirements.