What is the opportunity cost of taking this exam?
A) all of the things that you could have done by not studying
B) each of the questions that you miss on the exam
C) the highest valued alternative that you gave up to prepare for and attend the exam
D) the money you spent purchasing the textbook and the other materials you study with
E) the money you spent on tuition

Question

Quizplus · Accepted Answer

The opportunity cost is defined as the value of the best alternative that is given up. In this case, the opportunity cost of taking the exam is the highest valued alternative that you gave up to prepare for and attend the exam. This could be anything from spending time with family and friends, pursuing a hobby, or working at a job that pays more. Therefore, the best choice is C.

What Is the Opportunity Cost of Taking This Exam