What is the opportunity cost of an item?
A) the number of hours needed to earn money to buy it
B) what you give up to get that item
C) usually more than the dollar value of the item
D) the value of the resources needed to produce the item

Question

Quizplus · Accepted Answer

The opportunity cost of an item is what you give up to get that item. This means that you have to forgo something else in order to obtain it. For example, if you choose to buy a new phone, your opportunity cost could be the money you could have saved for a down payment on a house or a vacation. Therefore, the best choice is B.

What Is the Opportunity Cost of an Item