You have chosen to take a trip during the mid-semester break. If you had not gone, you would either have worked at a temporary job or studied for exams. The opportunity cost of your trip is
A) We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.
B) the wages you would have earned from working.
C) the wages you would have earned from working and the lower grade earned by not studying.
D) the value of the trip.
E) the lower grade earned by not studying.

Question

Quizplus · Accepted Answer

The opportunity cost of the trip is the value of the next best alternative that was given up. In this case, the next best alternative is either working or studying. Without knowing which alternative the person would have preferred, we cannot determine the opportunity cost.

You Have Chosen to Take a Trip During the Mid-Semester