The two main types of implicit opportunity costs are:
A)bills paid and revenue forgone.
B)bills paid and forgone wages.
C)earned wages and earned interest.
D)forgone wages and forgone interest.

Question

Quizplus · Accepted Answer

Implicit opportunity costs refer to opportunities that are forgone as a result of a decision. The two main types of implicit opportunity costs are forgone wages (the wages that could have been earned if an alternative employment opportunity was pursued) and forgone interest (the interest that could have been earned on a financial investment if the funds were not used for another purpose). Choices A and B include bills paid, which are not considered an implicit opportunity cost. Choice C includes earned wages and earned interest, which are not forgone opportunities and therefore not considered implicit opportunity costs.

The Two Main Types of Implicit Opportunity Costs Are