Which of the following is NOT an example of an opportunity cost?
A) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.
B) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year.
C) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
D) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of choosing one option over another, specifically the benefits you could have received by choosing the alternative. In choice C, Mary being able to afford a new car due to a higher wage is not an example of opportunity cost, as it does not involve a trade-off between two choices. Choices A, B, and D all describe situations where a decision to do one thing leads to the loss of an opportunity to do something else, which is the essence of opportunity cost.

Which of the Following Is NOT an Example of an Opportunity