A small

business owns the building in which it operates and, therefore, pays no rent.

This implies that there is no opportunity cost for the business regarding the

building.

It is Saturday, and Mpho decides to

attend a soccer league match that costs her R250 for the ticket and takes up

two hours of her time. If she had not attended the soccer match, she would have

read a couple of magazines.

Her opportunity cost to attend the

soccer league match is as follows:

Glenda works as a consultant and earns

R500 per hour. It is Saturday, and she decides to attend a soccer league match

instead of working. The cost of the soccer match ticket is R250 and it takes up

two hours of her time.

Her opportunity cost to attend the

soccer match is as follows:

You are

given the following information about a student who is studying economics:

Course

fee:                                                                                                                  R2 000

Internet

connectivity:                                                                                                    R300

Hardware

and software cost:                                                                                   R1 000

Cost

of food:                                                                                                                R3 000

Travel

cost to examination centre:                                                                              R120

Wages/Salary

the student could have earned if not studying economics:        R8 000

Use this

information to calculate the opportunity cost of studying economics for the

student.

In a traditional system, bartering plays an important role.

A weakness of the traditional system is that it is slow to adapt to new technology.

Under

a traditional system, the factors of production are owned by the government.