The opportunity cost of receiving $10 in the future as opposed to getting that $10 today is:
A) the foregone interest that could be earned if you had the money today.
B) the taxes paid on any earnings.
C) the value of $10 relative to the total income of that person.
D) the value of $10 relative to the total income of all persons.

Question

Quizplus · Accepted Answer

The opportunity cost of receiving $10 in the future instead of receiving it today is the potential interest that could be earned if the money was invested today. By delaying the receipt of the money, the individual foregoes the opportunity to earn interest on the money during that time.

The Opportunity Cost of Receiving $10 in the Future as Opposed