If Jessie studies economics for two hours instead of going to the movies with her friends,then
A)Jessie is not responding to any incentives.
B)Jessie is definitely making a rational choice.
C)Jessie is ignoring a sunk cost.
D)the benefit of studying is the missed movie.
E)the opportunity cost of studying is the missed movie.

Question

Quizplus · Accepted Answer

The opportunity cost of studying is the missed movie. This means that by choosing to study, Jessie is giving up the opportunity to go to the movies with her friends. It does not necessarily mean that she is making a rational choice or ignoring a sunk cost, nor does it mean that she is not responding to any incentives.

If Jessie Studies Economics for Two Hours Instead of Going