Question

All of the following except one are problems with free trade

a Human rights issues the way workers are treated

b environmental issues companies more apt o pollute

c the relationship between the us and the traders partners will be severed

Dave has his choice he can either work at Company A earning $30 per hour, Company B earning $25 an hour or Company C earning $15 per hour. What is Dave's opportunity cost of working at Company B?

a dave is giving up the opportunity to work at company A for $30

b sleep

c time with wife

Answer 1

Q. All of the following except one are problems with

free trade:-

Ans. a) Human rights issues the way workers are treated.

Q. What is Dave's opportunity cost of working at company B?

Ans. a) Dave is giving up the opportunity to work at company A for $30.

Since opportunity cost is the cost that is incurred by not employing the benefit associated with the best alternative choice, Dave's next best alternative is to work at company A for $30. But Dave did not choose to work at company A so it is his opportunity cost.