EBK PRINCIPLES OF MACROECONOMICS
12th Edition
ISBN: 9780134079592
Author: Oster
Publisher: YUZU
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Question
Chapter 1, Problem 1.1P
To determine
Relevance of
Expert Solution & Answer
Explanation of Solution
Decision regarding the allocation of time involves many trade-off situations. Thus, allocation of time for different alternatives is depends upon its opportunity cost. People balance their competing alternatives according to the time available to them and its opportunity cost. Simply, in this case, the opportunity cost is arises due to the scarcity of time and increasing number of competing alternatives of people.
Economics Concept Introduction
Concept introduction:
Opportunity cost: The best alternative cost that forgoes, or give up, when a choice has to be taken is termed as opportunity cost.
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