How do economists quantify the possibility that invested money could have been used for another purpose later on?

Question

Quizplus · Accepted Answer

Opportunity cost quantifies the notion that money invested or spent now might be better spent in the future if the money were kept liquid. Although opportunity costs are frequently subjective, it is important to consider them when making investment decisions. Opportunity cost is generally measured by the best forgone alternative.

How Do Economists Quantify the Possibility That Invested Money Could