Kari Birch has decided to put $25 more per week in her savings account.She knows this will reduce her ability to go out to eat each week but thinks building her savings is important.This would be an example of a(n):

Question

Quizplus · Accepted Answer

This is an example of opportunity cost, as Kari is giving up the ability to go out to eat in order to save more money. Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action, such as saving more money.

Kari Birch Has Decided to Put $25 More Per Week