The opportunity cost of studying for an economics test is
A)Negative because it may improve your grade.
B)Zero because you knew when you registered for the class that studying would be required.
C)The money you spent on tuition for the class.
D)The activity that is the best alternative use of your time.

Question

Quizplus · Accepted Answer

The opportunity cost is the best alternative use of your time, meaning what you would be doing if you were not studying for the economics test. This is because you must give up something to study for the economics test, and that something is the opportunity cost. The other answer choices are not correct because the opportunity cost is not negative, it is not zero because even though you knew studying would be required, you still have to give up something else to study, and it is not the money spent on tuition because that is a sunk cost and cannot be recovered regardless of what you choose to do with your time.

The Opportunity Cost of Studying for an Economics Test Is