Question

Can you think of an example of an opportunity cost associated with the COVID-19 pandemic? Are there trade-offs faced by households, individuals, businesses, or government officials due to the government handling of the pandemic? What might be some of the opportunity costs of a quarantine or stay-in-place order? Alternatively, what might be the opportunity cost of "opening up the economy"?

Answer 1

Answer - The opportunity cost is the cost of the opportunity forgone. In the case of pandemic , the opportunity cost of quanratine is the jobs and earning. For staying at home in pandemic , many have lost their jobs , and earnings , production has been shut down. Hence for the people , their job and earnings is the opoortunity cost , for nation , the large reduction in GDP is the opportunity cost.

If the nation opens up , the jobs will be there , but it would cost increased infections and death all across the nation. Hence the opportunity cost of opening up the nation is the loss of lives which has to be faced because of increased infection of corona virus.