What are opportunity cost, private cost, and social benefit?

QUESTION 4
A. Wants have opportunity cost.

Explanation: Mary has a limited amount of money (K10) and must choose between two items that both cost K10. By choosing one, she gives up the opportunity to have the other. This illustrates the concept of opportunity cost, which is the value of the next best alternative forgone when a choice is made.

QUESTION 5
B. private cost.

Explanation: When village people contribute money and pay PNG power for electricity service, this is a direct cost borne by the individuals or the specific group (the village people) for a service they receive. This is considered a private cost.

QUESTION 6
C. social benefit.

Explanation: Health services provided by the government are typically funded by the public (through taxes) and are intended to benefit the entire community or society. When the people of Mun enjoy these services, it represents a social benefit because the positive impact extends beyond individual users to the broader community.

QUESTION 7
A. value of the alternative you have sacrificed.

Explanation: Opportunity cost is defined as the value of the next best alternative that was not chosen or sacrificed when a decision was made. It represents what you give up to get something else.