Van is training for a triathlon, a timed race that combines swimming, biking, an

Question

Van is training for a triathlon, a timed race that combines swimming, biking, and running.

Consider the following sentence: In order to swim for an hour, Van must take time away from work, where he earns $11 per hour. This is in addition to paying a $4 entrance fee for the pool.

Which basic principle of individual choice do these statements best illustrate?

a. People usually exploit opportunities to make themselves better off.

b. The cost of something is what you give up to get it

c. Markets are usually a good way to organize economic activity

d. Trade can make everyone better off

Explanation / Answer

Ans) b is the correct option. The cost of something is what you give up to get it. Van has an opportunity cost of 11+ 4 = 15 for not going to work but to swim.

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