1.3

Question 1

define opportunity cost

Answer 1

the next best alternative foregone when making an economic decision

Question 2

what is the opportunity cost for a consumer

Answer 2

buy a new toy or a book

first choice: toy
opportunity cost : book

they made this decision as they have enough toys at home and books can help them with education cna general knowledge.

Question 3

what is the opportunity cost for a producer

Answer 3

increase more training or increase advertising

first choice: training
opportunity cost : advertising

the producer has made this decision as the workers or labours know how to work properly and needed more advertising for heir company.

Question 4

what is the opportunity cost for a worker

Answer 4

work overtime or spend time with family

first choice: work overtime
opportunity cost: spend time with family

the worker has decided to spend time with their family as they think that spending time with their family is more important than working late to earn a bit more money.

Question 5

what is the opportunity for the government

Answer 5

pay higher pensions or higher wages fro the government employees

first choice: pay higher pensions
opportunity cost: higher wages fro the government employees

the government has decided to increase the government employees’ wages than pay higher pensions as the workers work with all their efforts.