1. Topic of opportunity cost In this section, we will discuss what are the opportunity cost and application of the opportunity cost in attending an MBA program and Malaysia pegging its dollar to the US dollar. 1.1 Concept of the opportunity cost Choice involves sacrifice. The more food you choose to buy, the less money you will have to spend on other goods. The more food a nation produces the fewer resources will there be for producing …showed first 75 words of 636 total…

…showed last 75 words of 636 total…to the US dollar is floating uncompetitive exchange rate against others money (e.g. EU dollar). For example, Malaysia dollar is pegging to the US dollar at 3.8 RM/USD, EU dollar's exchange rate is 0.8EUD/USD, so Malaysia dollar's exchange rate against EU dollar is 4.47RM/EUD, and when EU dollar float to exchange rate at 0.95EUD/USD, Malaysia dollar increase exchange rate at 4RM/EUD, then Malaysia's production will lose competitiveness in EU market.