Suppose You Take a Trip During Spring Break

question 249

Multiple Choice

Suppose you take a trip during spring break.To determine the benefit of taking the trip,you

• A) calculate the opportunity cost of the trip.
• B) measure what you are willing to give up to take the trip.
• C) determine the sunk cost of taking the trip.
• D) calculate the value of the next best alternative foregone.
• E) must measure what the trip is worth to you and then subtract the cost of the trip.

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Definitions:

Opportunity Cost

The financial impact of rejecting the subsequent preferable alternative while deciding.

Housework

Tasks and chores done to maintain household operations, including cleaning, cooking, and home maintenance.

Work Force

The total number of people available to work, including both the employed and those seeking employment in a particular country or region.

Comparative Advantage

An economic theory that explains how countries or entities can gain by specializing in the production of goods and services they can produce more efficiently than others and trading for those they produce less efficiently.