Ted chooses to study for his economics exam instead of going to the concert.The concert he will miss is Ted's _______ of studying for the exam.
A)opportunity cost
B)discretionary cost
C)comparative cost
D)monetary cost
E)absolute cost

Question

Quizplus · Accepted Answer

The concept of opportunity cost means giving up the next best alternative in order to pursue a certain action or decision. In this case, the opportunity cost of studying for the economics exam is the enjoyment and experience of going to the concert. Therefore, the best choice is option A - opportunity cost.

Ted Chooses to Study for His Economics Exam Instead of Going