Jonathan Mendez is deciding whether to study for his economics exam at a café down the street or go to a concert a few cities over. The time spent commuting to the concert is ____ in his opportunity cost calculations and represents a _____ cost.
A)included; financial
B)included; nonfinancial
C)not included; financial
D)not included; sunk

Question

Quizplus · Accepted Answer

The time spent commuting to the concert is included in his opportunity cost calculations as it is time that Jonathan could have spent studying for his economics exam. However, it represents a nonfinancial cost as there is no direct monetary cost associated with the time spent commuting. Therefore, Jonathan should consider the opportunity cost of attending the concert and choose whether the benefit of attending the concert outweighs the opportunity cost of potentially doing poorly on his economics exam.

Jonathan Mendez Is Deciding Whether to Study for His Economics