If a student were not studying economics, he could be doing one of the following: sleeping in (which he values at $5), playing cards with his friends (which he values at $10), or working (he would have earned an extra $8). The opportunity cost of studying economics is therefore
A) $5.
B) $8.
C) $10.
D) $23.

Question

Quizplus · Accepted Answer

The opportunity cost of an action is the value of the next best alternative forgone. In this case, the highest valued alternative to studying economics is playing cards with friends, which the student values at $10.

If a Student Were Not Studying Economics, He Could Be