Sally has to decide whether to study for her economics test or her accounting test.If she chooses to study for accounting,her opportunity cost of studying accounting is
A)studying economics.
B)less than the value of studying economics.
C)not comparable to the value of studying economics.
D)equal to the value of studying economics.
E)the future lost wages that will occur if she fails her accounting exam.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is given up in order to pursue a certain action. In this scenario, if Sally chooses to study for accounting, she is giving up the opportunity to study for economics. Therefore, the opportunity cost of studying accounting is studying economics.

Sally Has to Decide Whether to Study for Her Economics