Is the concept of opportunity cost misunderstood? Survey evidence from students studying economics in Australia

Research output: Contribution to journalConference paperResearchpeer-review

Abstract

The notion of opportunity cost is arguably the most fundamental concept in economics and is often viewed as crucial in explaining and understanding individual rational choice on the basis of trade-offs. This study surveys the responses to an opportunity cost question which was adapted from the popular textbook, Robert Frank and Ben Bernanke’s textbook, Introduction to Microeconomics (2001). The results attained in this study are consistent with the Ferraro and Taylor (2005) study and raises serious questions about the understanding of fundamental concepts in economics. Furthermore, there may be implications in the way fundamental concepts in economics are taught to students.

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Economics
Opportunity cost
Textbooks
Microeconomics
Trade-offs
Rational choice

Keywords

  • opportunity cost
  • surveys
  • economic education

Cite this

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title = "Is the concept of opportunity cost misunderstood? Survey evidence from students studying economics in Australia",
abstract = "The notion of opportunity cost is arguably the most fundamental concept in economics and is often viewed as crucial in explaining and understanding individual rational choice on the basis of trade-offs. This study surveys the responses to an opportunity cost question which was adapted from the popular textbook, Robert Frank and Ben Bernanke’s textbook, Introduction to Microeconomics (2001). The results attained in this study are consistent with the Ferraro and Taylor (2005) study and raises serious questions about the understanding of fundamental concepts in economics. Furthermore, there may be implications in the way fundamental concepts in economics are taught to students.",
keywords = "opportunity cost, surveys, economic education",
author = "Joseph Macri",
year = "2008",
language = "English",
volume = "5",
pages = "256--262",
journal = "Proceedings of the IABE-2008 annual conference",
issn = "1932-7498",
publisher = "International Academy of Business and Economics",
number = "1",

}

Is the concept of opportunity cost misunderstood? Survey evidence from students studying economics in Australia. / Macri, Joseph.

In: Proceedings of the IABE-2008 annual conference, Vol. 5, No. 1, 2008, p. 256-262.

Research output: Contribution to journalConference paperResearchpeer-review

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