Read each scenario below and find two opportunity costs for each situation. Sall

Question

Read each scenario below and find two opportunity costs for each situation.

Sally just completed a 4-year degree in Marketing and has two student loans she must begin paying back in three months. After graduation, Sally decides to devote two years to The Peace Corp.

Joe always has to have the latest and greatest technology even as a college student responsible for paying his own tuition. In the past six months, Joe has upgraded his cell phone before his contract was up for renewal, bought a brand new laptop, and purchased a 72-inch high definition television with a new gaming system. To fund these purchases, he works 30 hours each week at a local bakery.

Explanation / Answer

Ans 1 - In the first scenario, Sally has two opportunity costs of earning money while the 4 year degree program. And earning better pay with four years of experience while devoting time to the Peace Corp.

Ans 2 - Joe has two opportunity costs of purchasing technology equipments while he could have saved that money. And secondly, he is a college student and can earn more by not going to college.

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