Which of these is an example of an opportunity cost?
A)Spending for current living expenses increases the amount you have for saving and investing.
B)Saving and investing for the future reduces the amount you can spend now.
C)Buying on credit results in payments later and increases the amount of future income available.
D)Using savings for purchases results in additional interest earnings.
E)Comparison shopping can cost you money and time.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is foregone when making a decision. In this case, saving and investing for the future reduces the amount you can spend now, representing the opportunity cost of not spending that money in the present.

Which of These Is an Example of an Opportunity Cost