An opportunity cost
A) can be measured only when the decision involves expenditures of money.
B) can be measured only when the decision involves spending time on one thing and not on another.
C) is impossible to measure.
D) is equal to the value of what is given up to make a purchase or take an action.
E) exists for every decision made by individuals and businesses,but not by the government.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that is forgone when a decision is made. It is not limited to decisions involving money or time, and it exists for all decision-makers. Therefore, option D is the correct answer.

An Opportunity Cost