All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

William Polley
''Do students recognize an opportunity cost when they see one? Evidence from introductory economics''
( 2014, Vol. 34 No.3 )
The well-known study by Ferraro and Taylor (2005) on the understanding of opportunity cost has sparked considerable debate. This paper addresses one specific aspect of the question, namely the issue of units of measurement when converting goods to dollars for comparison purposes. Results strongly suggest that the source of difficulty with the original question stems from the confusion over units of measurement rather than with the concept of opportunity cost itself.
Keywords: opportunity cost, willingness to pay, consumer surplus
JEL: A2 - Economics Education and Teaching of Economics: General
D1 - Household Behavior: General
Manuscript Received : Mar 16 2013 Manuscript Accepted : Jul 17 2014

  This abstract has been downloaded 1514 times                The Full PDF of this paper has been downloaded 154645 times