Question

I would like to ask some questions about opportunity cost.

1) The opportunity cost of winning a free voucher to dine in a Japanese restaurant worth $100 and attending the dinner is
a)zero, since the voucher is free
b)priceless, if the person really loves Japanese foods.
c)$100, representing the lost market value of selling it to someone.
d)zero, if the person would rather go to the dinner than doing anything else.

Answer 1

2) You are given a basketball match ticket. The face value of the ticket is $50. You value attending the basketball match at $40. You can sell the ticket to someone for $10 and attend a soccer match by getting a ticket at $60. The opportunity cost of attending the soccer match is:
a)10
b)90
c)40
d)50

3) Thomas wants to be a participant of competitions organised by his school. He is interested in Physics, Mathematics and Chemistry competitions. He estimates that the experience and knowledge he can gain from these are $1000, $800 and $550 respectively. He also has to devote 8 hours, 7 hours and 10 hours every week respectively for preparations. Suppose he can work as part time for $50 per hour, what is the opportunity cost of Thomas to be a participant of the Physics competition?
a) 1000
b)600
c)450
d)0

4)Ryan is given $5 from his mother to buy a pen. He is not allowed to buy anything else but the pen. The opportunity cost of buying the pen is $5.
True or false?

Answer 2

What do you think and why?