What is the best way to measure the opportunity cost of gasoline
A)by the average price of a litre of gasoline
B)by the fuel efficiency of the average North American car
C)by the pollution emitted per 1 km of driving
D)by the number of minutes of work needed to pay for 1 km of driving

Question

Quizplus · Accepted Answer

The opportunity cost of gasoline refers to what else could have been purchased or done with the money spent on gasoline. Therefore, option D, measuring the number of minutes of work needed to pay for 1 km of driving, provides a clear indication of the opportunity cost because it represents the value of the time and effort needed to earn the money to purchase the gasoline. Option A only considers the monetary cost of gasoline, while option B only focuses on fuel efficiency, which is not directly related to opportunity cost. Option C is relevant to environmental concerns but does not directly relate to the opportunity cost of gasoline.

What Is the Best Way to Measure the Opportunity Cost