Answer to Question #305999 in Macroeconomics for fai

Question

Mr. Wong is a retired secondary teacher. Recently, he has become a volunteer tutor in

a community centre teaching a free guitar course.

(a) ‘Since Mr. Wong does not have any income from work, working as a volunteer

tutor does not involve an opportunity cost.’ Do you agree with this statement?

Explain.

(b) Explain whether the free tuition service provided by Mr. Wong is a free good.

Answer 1

a)Yes. Mr. Wong does not receive any reward his volunteer work because the value of what he gives up does not give him an opportunity to choose another best alternative income earning. It is just a volunteer work.

b)Mr. Wong's volunteer work is a free good because he is giving ideas and works that are reproducible at zero cost.