Chapter 1.2, Problem 3R

To determine

Opportunity cost

Explanation of Solution

	Economic Decision	Likely Opportunity Cost
Individual	Gets second job	Opportunity cost of getting second job is the first job given up in order to continue this job.
Family	Purchase car	Opportunity cost of purchasing a car for a family may be the trip to Europe.
Business	Paves parking lot	Opportunity cost of paving a parking lot could be the construction of a warehouse.

Economics Concept Introduction

Introduction:

Opportunity cost refers to the cost of the next best alternative forgone in order to do the work selected. For example the opportunity cost of studying is the time that may have been spent on watching Television. In other words, it is the trade-off people make due to the scarcity of resources.