41) Tradeoffs involve an exchange of one thing for another because resources are limited and can be used in different ways.
42) The notion of opportunity cost allows the measurement of tradeoffs.
43) In order to get his bachelor's degree, Timothy gave up an offer for a full time job as a bartender. Therefore, Timothy incurred an opportunity cost.
44) The opportunity cost of going to a particular college is not the same for everyone.
45) The cost of a bachelor's degree in philosophy equals the tuition plus the cost of room and board.
46) What is an opportunity cost?
47) Suppose that you lend $5,000 to a friend who pays you back $5,400 the next year. Suppose that prices that year rose by six percent and the real rate of return in the stock market was five percent. Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return. What do you think?
48) What is the opportunity cost of investing $10,000 of your own money in a business you wish to start?
49) What do economists mean when they say that there is no such thing as a free lunch?
50) What is the opportunity cost of your college degree?