If Jessie studies economics for two hours instead of going to the movies with her friends,then
A) the benefit of studying is the missed movie.
B) the opportunity cost of studying is the missed movie.
C) Jesse definitely is making a rational choice.
D) Jessie is ignoring a sunk cost.
E) Jessie is not responding to any incentives.

Question

Quizplus · Accepted Answer

The opportunity cost of studying is the missed movie, as Jessie had to give up the opportunity to watch the movie with her friends. This is a basic concept of economics, where one has to choose between alternatives and the cost of choosing one alternative is the opportunity forgone of choosing the other alternative.

If Jessie Studies Economics for Two Hours Instead of Going