Which of the following statements is FALSE about opportunity cost?
A) Cost is always foregone opportunity.
B) Opportunity cost is the next best alternative.
C) When a person buys two items, the concept of opportunity cost applies even though she can afford to buy both items.
D) Opportunity cost exists only for goods with monetary values.

Question

Quizplus · Accepted Answer

Opportunity cost exists for all choices, regardless of whether or not there is a monetary value associated with them. For example, if a person chooses to spend an hour watching TV, the opportunity cost is the hour they could have spent exercising or studying.

Which of the Following Statements Is FALSE About Opportunity Cost