Question

Back to Assignment Attempts: Average: /2 3. Problems and Applications Q3 You were planning to spend Friday working at your part-time job, but a friend asks you to go rock climbing. Which of the following are included in the true cost of going rock climbing? Check all that apply. D The wages you forgo by going rock climbing ■ The cost of your rock climbing shoes you purchased last year The rental of any rock climbing equipment you need The cost of hiring a guide Now suppose you had been planning to spend the day binge watching your favorite show. What is the cost of going rock climbing in this case? Check all that apply The value of your time spent watching television The cost of your rock climbing shoes you purchased last year The rental of any rock climbing equipment you need The cost of hiring a guide

Answer 1

Q.1

True cost of rock climbing will consist of the opportunity cost from wages forgone that would have obtained by working on Friday. In addition to that, any rental of rock climbing equipment and hiring a guide will also be included in the true cost.

Cost of shoes purchased last year doesn't matter because they are not deducted from the current income of the individual.

Correct ans - A,C,D

Q.2.

In this case, since I had to give up binge watching my favorite show to go on Rock climbing, thus the value of the time spent watching TV is an opportunity cost which I had to sacrifice. Rest of the analysis is same as above.

Correct ans - A,C,D