Economics Asynchronous Assignment

Name: R Manish
Registration Number: 2111009

Q1. Give three examples of important trade-offs that you have faced in your life.
Answer
Meaning of Trade-offs: Trade off is where benefit of one thing increases with a
decrease or sacrifice by choosing an alternative. It is called as opportunity cost.
Examples of Trade-offs in life:
➢ After my completion of grade 10 I had an opportunity to choose a stream
out of the three options available (PCB, PCM, Commerce). At that point of
time, I chose commerce stream by sacrificing the benefits of other streams
that is PCB & PCM.
➢ During my school days I was nominated for School Pupil Leader and
President of Clubs & Fests. I chose School Pupil Leader as my post by
sacrificing the opportunities of President of Clubs & Fests, because I had a
huge interest in leading the whole crew and conducting various events.
➢ In my school days I would love to play sports tournaments. At that time my
final exams of grade 12 clashed with it hence I sacrificed sports and I
focused on my academics. Therefore, I enjoyed the benefits of academics.

Q2. What items would you include to figure out the opportunity cost of a
weekend trip to favorite holiday destination?
Answer
The items which we need to include to figure out the opportunity cost for holiday
destination are,
❖ At first will create a budget for the trip according to the destination chose.
The budget will include the cost of travel (mode of transport), food,
lodging facility as a whole a best package for the trip.
❖ We need to analyze the various packages with respect to cost and benefits
we get.
 For example,
1. Package to Kodaikanal including 4 days and 3 nights with all
other required facility at a rate of Rs.20000 per head by
International Travel House.
2. Package to Kodaikanal including 4 days and 3 nights without
food at a cost of Rs. 14000 per head by Travel Guru.
3. Package to Kodaikanal including 5 days and 4 nights with all
required facilities at a rate of Rs.18000 per head by Sky tours and
travels.
Out of these three packages we need to analyze with respect to cost & benefits.
We have to understand the seen and unseen factors, like in package by
International Travel House and Travel Guru is same because after including the
cost of food, its benefits and rate are same. Therefore, the best option among the
above packages is offered by Sky tours and travels. Hence after making a
decision, we have to plan our week according to the budget framed for the trip.

Q3. Why does a gifted sportsperson spend few years of schooling and opt for a
professional career quite early in his life?
Answer
A gifted sportsperson spends few years of schooling and opt for a professional
career quite early in his life is because of opportunity cost. When an individual
continues his/her schooling he will incur a cost of tuition fees, books, rooms and
his time is also limited. Hence, he/she will not be able to concentrate on sports.
Therefore, considering these cost and benefits gifted sportsperson like Ronaldo,
LeBron James quitted and sacrificed their schooling at their early stages of life.

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