Sunday, February 19, 2006

Money Well Spent? Not.

A basic question. Which I get wrong:
Please circle the best answer to the following question:

‘You won a free ticket to see an Eric Clapton concert (which has no resale value). Bob Dylan is performing on the same night and is your next-best alternative. Tickets to see Dylan cost $40. On any given day, you would be willing to pay up to $50 to see Dylan. Assume there are no other costs of seeing either performer. Based on this information, what is the opportunity cost of seeing Eric Clapton?

(a) $0
(b) $10
(c) $40
(d) $50.
I think the question is both stupid and badly worded, but I should still get it right after 6 figures of education in the subject...

Bah. Mathiness.


Ahistoricality said...

I think that has to be one of the worst hypothetical questions I've ever seen. One of the things that I hate about economists is the way they bill themselves as "realists" and "real-world" scholars, when they're at least as theoretical and abstract as any other social scientist, and less useful than most.

XWL said...

:Please circle the best answer to the following question:

The answer is none of the above and $350 dollars to replace the monitor I just ruined by doing what you asked.

(It's your fault I used an indelible marker while circling my choice)

Ahistoricality said...

Can't you just use some white-out?