A2 - Chapter 2- Pitfalls in Economic Decision MakingOpportunity CostQ1: Economists measure costs differently from other professions. Accountants are concernedwith ____________, the out-of-pocket payment that is typically accompanied by a receipt (ega receipt for a meal in a restaurant). To economists, the relevant cost of a choice is the _____________,the best alternative given up.Q2: Jane is considering taking an Economics course. She would have to pay $250 for the course, $50 for student fees, and $100 for textbooks. Jane would also need to cut back her work hours to attend classes and to study. As a result, her work income is expected to fall from $5,000 to $4,000. a) What is Jane's explicit cost of taking the course?b) What is Jane's opportunity cost of taking the course?The opportunity cost of attending college includes the __________________.Q3: Jane currently pays rent. If she takes the Economics class, she will spend $3,000 on rent. But, if she does not take the class, she will spend $1,800 on rent. Compared to her opportunity cost from Q2, Jane's new opportunity cost of taking the Economics class isa)lower by $1,200.c)lower by $3,000.b)lower by $1,800.d)higher by $1,200.Q4: Is Jane better off if she takes the course? Explain.Q5: Amy is deciding whether to buy a ticket for a concert. The price of the ticket is $80. What is Amy's opportunity cost of attending the concert?Q6: Boyan paid $80 for a ticket to a concert that subsequently sells out. What is Boyan's opportunity cost of attending the concert if she can sell her ticket for $200?Q7: Carl won a ticket to a concert that was selling for $80. The concert subsequently sells out. What is Carl's opportunity cost of attending the concert if he can sell the ticket for $200?Q8: Deepak paid $30 for a non-refundable ticket to a hockey game. Ticket sales for the gameturn out to be low and he can now sell his ticket for only $12. What is Deepak's opportunity cost of attending the game