Define opportunity costs, accounting costs and economics costs. Solve this problem:
You must choose between sports training or working full time. If you choose sports training, you will have less of a social life. You will also pay $20,000 per year for training, but you will get a $15,00 grant. Food and rent is $10,000 a year. If you work full time, you wages will be $25,000, and you will have more of a social life. Food and rent wills till be $10,00 per year.
What if the economic and opportunity cost of the sports training? Of working?
Opportunity costs us the value of the choice not being persued in a decision.
I.e going to a concert instead of studying for a big exam
Accounting costs: the out of pocket expense of performing and activity. I.e going to a concert and paying for transportation, gas, parking and the ticket.
Economic costs: the relevant ...
This job defines opportunity costs, accounting costs and economics costs.