Multiple Choice
How does the study of economics help individuals make better choices?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following is an example of an opportunity cost?
A
The amount of time spent studying for exams
B
The cost of textbooks purchased for college courses
C
The income you forgo by attending college instead of working full-time
D
The tuition fee paid for college
Verified step by step guidance1
Understand the concept of opportunity cost: it is the value of the next best alternative foregone when making a choice.
Identify each option and determine what is being given up in each case.
For 'the amount of time spent studying for exams,' consider what alternative activities could have been done with that time.
For 'the cost of textbooks purchased for college courses' and 'the tuition fee paid for college,' recognize these as explicit monetary costs, not necessarily opportunity costs by themselves.
For 'the income you forgo by attending college instead of working full-time,' recognize this as the value of the next best alternative (working full-time) that is given up, which fits the definition of opportunity cost.
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