Your aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

Question

Quizplus · Accepted Answer

The opportunity cost is the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another. In this case, the opportunity cost of saving the money is the enjoyment or goods you could have purchased by spending the money now.

Your Aunt Gives You Some Money for Your Birthday and You