An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is equal to:

Question

Quizplus · Accepted Answer

The opportunity cost of fishing includes not just the monetary expenses such as the cost of bait, but also the value of the next best alternative use of the individual's time, which could include looking for work or other activities that could potentially earn income. Therefore, option B is the correct answer. Option A is incorrect because even though the person is unemployed, their time still has value. Option C is incorrect because it only includes the monetary expenses and not the value of the individual's time. Option D is incorrect because the individual is currently unemployed, so there are no wages being earned to factor into the opportunity cost calculation.

An Unemployed Individual Decides to Spend the Day Fishing