The opportunity cost of a purchase is:
A) zero if the item is what you want most.
B) always equal to the selling price of what you purchased.
C) always greater for people who are out of work than for people who are working.
D) the alternative good or service that one sacrifices because a different good was purchased.
E) the lowest possible price.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the alternative good or service that one sacrifices because a different good was purchased. Therefore, the correct answer is D. Choice A is incorrect because even if the item is what you want most, you still have to give up the opportunity to purchase other goods or services. Choice B is incorrect because the selling price does not reflect the opportunity cost. Choice C is incorrect because the employment status is irrelevant to opportunity cost. Choice E is incorrect because the lowest possible price is not necessarily related to opportunity cost.

The Opportunity Cost of a Purchase Is