Answer to Question #278842 in Macroeconomics for Eman

Question

You were planning to spend Saturday working at your part-time job, but a friend asks you to go for picnic. What is the true cost of going to picnic? Now suppose you had been planning to spend the day studying at the library. What is the cost of going to picnic in this case?

Answer 1

The cost of going to a picnic instead of working part time job is the cost and time spent on going for a picnic and the cost of wages that could have been earned in one day's work.

The cost of going for picnic instead of going to the library for studying is the cost and time spent on going for picnic and the knowledge one could have gained by studying for a day.