The benefit from a good or service that you purchase is measured by
A) the dollar amount that is paid for the good or service.
B) the dollar amount you can get by selling the good or service.
C) what you are willing to give up to obtain the good or service.
D) how strong the incentives were that lead to buying the good or service.
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.

Question

Quizplus · Accepted Answer

The benefit from a good or service is measured by what you are willing to give up to obtain it, also known as opportunity cost. This is the value you place on the next best alternative that you could have chosen instead. The dollar amount paid or received for the good or service is merely a reflection of the market price, but it does not necessarily equate to the benefit or value received by the consumer. The strength of incentives or the ability to sell the good or service may also affect the purchase decision, but they do not necessarily measure the benefit received. Option E is incorrect because the benefit can be measured using the concept of opportunity cost.

The Benefit from a Good or Service That You Purchase