Microeconomics: Introduction · Class 11 · CBSE · Commerce Economics
Riya has three hours available. She can attend a study workshop, work at a job earning ₹600, or spend the time relaxing. She values the job more than…
Practice question from Microeconomics: Introduction (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · MCQ · Q-C93736
Riya has three hours available. She can attend a study workshop, work at a job earning ₹600, or spend the time relaxing. She values the job more than relaxation but chooses the workshop. What is the opportunity cost of her choice?
- A.The time spent attending the workshop
- B.₹600Correct answer
- C.The benefit received from the workshop
- D.The value of both the job and relaxation added together
Solution
Opportunity cost is the value of the next best alternative forgone. Since Riya values the job more than relaxation, the opportunity cost of attending the workshop is the ₹600 she could have earned.
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