What is the opportunity cost of taking an exam?
A) all of the things that someone could have done by not studying
B) each of the questions that someone misses on the exam
C) the highest valued alternative that someone gave up to prepare for and attend the exam
D) the money someone spent purchasing the textbook and the other materials with which he or she studies
E) the money someone spent on tuition

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits that could have been enjoyed if the best alternative choice was selected instead. In the case of taking an exam, the opportunity cost would be the highest-valued alternative foregone to prepare for and attend the exam. Therefore, choice C is the best option. The other options do not accurately reflect the concept of opportunity cost.

What Is the Opportunity Cost of Taking an Exam