Describe what the real cost the opportunity cost/ Econometrics
1. We measure opportunity cost in monetary value. Suppose you spend $100 for new clothes. You will say that the clothes cost you $100. But the money you spent is not the real cost of the new clothes. Describe what the real cost—-your opportunity cost—–would be if you spent $100 on new clothes.
2. If you watch television for two hours, you don’t spend any money. Does this mean that you bear no opportunity cost for watching TV?
