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Listen to an Academic Talk Test #007
Listen to an Academic Talk
1. What is the main purpose of the talk?
A) To compare different economic theories
B) To criticize government spending habits
C) To explain a basic concept in economics
D) To offer advice on personal finance
2. What does the lecturer identify as an opportunity cost of going to the beach?
A) The risk of getting a sunburn
B) The money that could have been earned at work
C) The price of admission to the beach
D) The enjoyment of outdoor activities
3. What does the lecturer imply about making choices?
A) Most decisions do not have a significant cost.
B) It is important to consider the alternatives given up.
C) Financial costs are the most important factor.
D) People rarely think about opportunity costs.
4. Why does the lecturer mention a city government?
A) To illustrate that opportunity cost applies to organizations
B) To argue for increased funding for public libraries
C) To demonstrate a poor financial decision
D) To contrast individual and collective choices
Lecturer: In economics, one of the most fundamental concepts is 'opportunity cost.' It's a simple but powerful idea. Basically, the opportunity cost of any decision is the value of the next-best alternative that you had to forgo. It's what you give up to get something else.
For example, let's say you decide to spend Saturday afternoon at the beach. Your opportunity cost isn't just the money you spend on gas and snacks; it's also the value of the time you could have spent studying for an exam or earning money at a part-time job.
This concept applies on a larger scale, too. If a city government uses its budget to build a new sports stadium, the opportunity cost is the new public library it could have funded instead. So, opportunity cost forces us to recognize the trade-offs in every choice.
For example, let's say you decide to spend Saturday afternoon at the beach. Your opportunity cost isn't just the money you spend on gas and snacks; it's also the value of the time you could have spent studying for an exam or earning money at a part-time job.
This concept applies on a larger scale, too. If a city government uses its budget to build a new sports stadium, the opportunity cost is the new public library it could have funded instead. So, opportunity cost forces us to recognize the trade-offs in every choice.
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