A radio station gives "free money" to those listeners whose names are drawn and announced over the airwaves from postcards the listeners sent into the radio station. Is the money really free for the listener?
While most students can identify the monetary cost of the postcard and stamp, we also must consider the opportunity cost of listening to the radio. It is true that we can do other activities while the radio is on and listen attentively when a name is drawn and announced over the airwaves. But there's also the opportunity cost of not being able to listen to another station, one that might offer more preferred programming.
You might also like to view...
The income elasticity of demand is a measure of the responsiveness of the
A) quantity of a good demanded to changes in income. B) consumer's income to a change in the price of the goods he or she consumes. C) quantity of a good demanded to changes in its price. D) quantity of a good demanded to changes in another good's price.
Which of the following is not true? a. Voluntary exchange is expected to be advantageous to both parties to the exchange
b. What one trader gains from a trade, the other must lose. c. If one party to a potential voluntary trade decides it does not advance his interests, he can veto the potential trade. d. The expectation of gain motivates people to engage in trade.