Answer to Question #281085 in Macroeconomics for usha

Question

You work in a bank and were planning to spend Saturday going to watch your local football team with your son and daughter. However, your boss has asked you if you would help prepare some important financial data for some new regulations that are being introduced by the government. It is not compulsory to come in over the weekend but it is made clear it would be looked upon favourably. a. If you decide to go to the football match, what is the true cost to you of that decision? [5 marks] b. If you decide to go into work for the weekend to help out your boss, what is the true cost of that decision? 

Answer 1

If he decide to go to watch football, the true cost is the bus fare he will pay and possibly buying snacks for his children.

If he decide to go and help his boss, he will pay for transport to the workplace only. So, this true cost will be lower than the one for watching football. Additionally, if he go to work he might be compensated for working on a weekend.