Opportunity cost refers to:
A)money needed for major consumer purchases.
B)the trade-off of a decision.
C)the amount paid for taxes when a purchase is made.
D)current interest rates.
E)evaluating different alternatives for financial decisions.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative forgone. It is the trade-off of a decision, meaning that choosing to do one thing means not being able to do another thing. So, the best choice is B, as it correctly defines opportunity cost.

Opportunity Cost Refers To