How are changes in opportunity cost predicted to affect behavior?
A) The lower the opportunity cost of doing X,the less likely X will be done.
B) The higher the opportunity cost of doing X,the less likely X will be done.
C) The lower the opportunity cost of doing X,the more likely X will be done.
D) a and c
E) b and c

Question

Quizplus · Accepted Answer

The higher the opportunity cost of doing something, the less likely an individual is to do it because they are giving up more to engage in that activity. Conversely, the lower the opportunity cost, the more likely they are to do it because they are sacrificing less. Choices B and C accurately reflect this relationship.

How Are Changes in Opportunity Cost Predicted to Affect Behavior