Which of the following statements is true?
A)The opportunity cost of a decision is equal to the explicit cost in monetary terms.
B)The opportunity cost of a decision is the value of the best foregone alternative.
C)Some economic decisions have zero opportunity cost.
D)The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.
E)The opportunity cost of producing a good is negative during inflation.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the best alternative foregone. It includes both explicit (monetary) and implicit (non-monetary) costs. Option A is incorrect because opportunity cost includes both explicit and implicit costs. Option C is incorrect because every decision has an opportunity cost. Option D is incorrect because the opportunity cost may differ among students at the same university based on factors such as their choice of major or extracurricular activities. Option E is incorrect because opportunity cost cannot be negative.

Which of the Following Statements Is True