Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Which of the following is the opportunity cost of watching a stand up comedy show?

Options:

The emotion of laughter involved in the comedy show.

The time which you would use to study after the show.

Entertainment which you received while watching the show.

The time which you would use to do dance

Correct Answer:

The time which you would use to do dance

Explanation:

The time which you have utilised watching the comedy show could have been utilised in various other activities like: singing, dancing or studying. Thus, here the opportunity cost is TIME. 

Choosing to watch the comedy show instead of dancing represents the opportunity cost in terms of the value of the next best alternative activity.