Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Tedʹs ____________of studying for the exam.

Question

Quizplus · Accepted Answer

The concert that Ted is missing is his opportunity cost. Opportunity cost refers to the highest valued alternative that must be given up in order to pursue a certain activity. In this case, the alternative is attending the concert and the value given up is the time and enjoyment at the concert.

Ted Can Study for His Economics Exam or Go to a Concert