Eric Clapton versus Bob Dylan concert: The Answer

Ok, to follow the logic, given that normally you'd pay £50 for a Bob Dylan concert but it only costs £40 that night, you'd be saving £50-£40 = £10.

So, if Eric Clapton is the only substitute that night, you wouldn't go and watch him if his ticket costs more than £10.

In other words, the opportunity cost of going to see Eric Clapton is £10.

......

I guess the point I've been trying to make is that, when this question was posed by economists Paul Ferraro and Laura Taylor to a group of 270 economic students, only 7.4% could give the correct answer. Given that there were only 4 multiple choices, there was a 25% chance of getting it right. Yet it does show that some knowledge of economics may be a bad thing if it wasn't taught properly.

We often go into economic classes and see lots of graphs with blue and red swiggly lines that just don't make much sense to us. However, the way Bob Frank teaches - narrative teaching, i.e. bringing real life situation into play and use economics to explain it - can really revolutionalise how the science of economics should be taught!