People are especially prone to undervaluing opportunity costs when

Question

Quizplus · Accepted Answer

People tend to undervalue opportunity costs more when they are nonmonetary, such as time, because they are more difficult to quantify in monetary terms. For example, people may not value the time spent commuting or waiting in line as much as they should because they do not assign a financial value to it. This answer is more accurate because it specifies a specific type of opportunity cost that is more prone to undervaluation, whereas option B only mentions obvious costs and option D implies that monetary opportunity costs are undervalued.

People Are Especially Prone to Undervaluing Opportunity Costs When