Whitney has 50 in spending money each week which she can allocate between gloves and socks The price of gloves is 8 per pair, and the price of socks is 4 per pair. Based on this information which statement correctly describes the opportunity cost? Select the best answer. Answer 2 Points There is no opportunity cost involved because Whitney can afford both goods with her budget. The opportunity cost of a pair of gloves is 0.5 pairs of socks and the opportunity cost for a pair of socks is 2 pairs of gloves. The opportunity cost of a pair of gloves is 2 pairs of socks, and the opportunity cost for a pair of socks is 0.5 pairs of gloves. There is no opportunity cost because both items are part of her opportunity set.

To determine the correct answer, let's analyze the opportunity cost based on the given information:<br /><br />### Key Information:<br />1. Whitney has **\$50** to spend each week.<br />2. The price of a pair of gloves is **\$8**.<br />3. The price of a pair of socks is **\$4**.<br /><br />### Opportunity Cost Definition:<br />The **opportunity cost** of choosing one good is the amount of the other good that must be given up to obtain it. This is calculated by comparing the prices of the two goods.<br /><br />---<br /><br />### Step 1: Calculate the Opportunity Cost<br />- If Whitney buys **1 pair of gloves** (costing \$8), how many pairs of socks could she have bought instead?<br /> \[<br /> \text{Opportunity cost of 1 pair of gloves} = \frac{\text{Price of gloves}}{\text{Price of socks}} = \frac{8}{4} = 2 \text{ pairs of socks}.<br /> \]<br /><br />- If Whitney buys **1 pair of socks** (costing \$4), how many pairs of gloves could she have bought instead?<br /> \[<br /> \text{Opportunity cost of 1 pair of socks} = \frac{\text{Price of socks}}{\text{Price of gloves}} = \frac{4}{8} = 0.5 \text{ pairs of gloves}.<br /> \]<br /><br />---<br /><br />### Step 2: Evaluate the Statements<br />1. **"There is no opportunity cost involved because Whitney can afford both goods with her budget."**<br /> - Incorrect. Opportunity cost always exists when resources are limited, even if Whitney can afford both goods.<br /><br />2. **"The opportunity cost of a pair of gloves is 0.5 pairs of socks, and the opportunity cost for a pair of socks is 2 pairs of gloves."**<br /> - Incorrect. This reverses the actual opportunity costs.<br /><br />3. **"The opportunity cost of a pair of gloves is 2 pairs of socks, and the opportunity cost for a pair of socks is 0.5 pairs of gloves."**<br /> - Correct. This matches the calculations above.<br /><br />4. **"There is no opportunity cost because both items are part of her opportunity set."**<br /> - Incorrect. While both items are in her opportunity set, opportunity cost still applies when making choices.<br /><br />---<br /><br />### Final Answer:<br />**The opportunity cost of a pair of gloves is 2 pairs of socks, and the opportunity cost for a pair of socks is 0.5 pairs of gloves.**