Multiple Choice
Which of the following scenarios involves no opportunity cost?
102
views
0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following is NOT an example of an opportunity cost?
A
The time you could have spent with friends while working overtime
B
The money spent on a textbook for a required course
C
The income you forgo by attending college instead of working full-time
D
The enjoyment you miss by choosing to study rather than go to a concert
Verified step by step guidance1
Step 1: Understand the concept of opportunity cost. Opportunity cost is the value of the next best alternative that you give up when making a choice. It includes both explicit costs (monetary payments) and implicit costs (non-monetary costs such as time or enjoyment).
Step 2: Analyze each option to identify if it represents an opportunity cost. For example, 'The time you could have spent with friends while working overtime' is an implicit cost because you give up social time.
Step 3: Consider 'The income you forgo by attending college instead of working full-time' as an opportunity cost because it is the income you sacrifice by choosing education over work.
Step 4: Look at 'The enjoyment you miss by choosing to study rather than go to a concert' as an opportunity cost since it represents the lost pleasure from the alternative activity.
Step 5: Evaluate 'The money spent on a textbook for a required course.' Since this is a necessary expense for the course and not a foregone alternative, it is a sunk cost rather than an opportunity cost.
Related Videos
Related Practice
