What is the opportunity cost of planting a garden for Clara?

Study for the Economics Fundamentals Test. Learn with diverse question types, each accompanied by elucidations and insights. Master essential economic principles and excel in your exam!

The opportunity cost of planting a garden for Clara can be understood as the value of the best alternative foregone when a choice is made. In this scenario, if Clara chooses to plant a garden, she must give up the option of engaging in other productive or enjoyable activities.

When considering the choices given, washing her car represents an activity she could do instead of planting her garden. The time and resources allocated to gardening cannot be used for washing her car, which might also have personal or financial benefits. Therefore, the value of that alternative—whether it’s the joy of having a clean car or the time saved in maintenance—constitutes the opportunity cost of her decision to plant.

Studying economics is also an alternative activity but might not necessarily be the best option foregone compared to something directly related to her personal time preferences. Deciding what to plant in the garden and planting the garden itself are part of the gardening process and do not represent forgone alternatives; they are more related to the execution of her decision rather than what she is giving up.

Thus, the opportunity cost is fundamentally about the value of the next best alternative she forgoes, which in this case is washing her car.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy