An example of opportunity cost is the:
A) marginal revenue that a firm receives when producing one more product.
B) time that a student spends studying for an economics test that results in less study time for a math test.
C) price of a new car.
D) decrease in disposable income as taxes increase.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of an alternative that must be forgone in order to pursue a certain action. In this case, the time a student spends studying for an economics test instead of a math test represents the opportunity cost of not being able to study for the math test.

An Example of Opportunity Cost Is The