Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the
A) forgone party.
B) forgone working and partying.
C) test because you are taking it.
D) forgone working or partying, depending on which was your next best choice.
E) forgone work.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action. In this case, the opportunity cost of taking the test is the value of either working or partying, whichever would have been the next best choice. Therefore, the best choice is D, forgone working or partying depending on which was your next best choice.

Suppose That, Instead of Taking This Test, You Could Either