When Bob has to give up lunch in order to have a fancy dinner,the economic principle that is highlighted by his situation is the
A) marginal principle.
B) spillover principle.
C) principle of opportunity cost.
D) reality principle.

Question

Quizplus · Accepted Answer

The principle of opportunity cost states that when making a decision, one must consider the alternative options that are forgone. In this case, Bob is giving up his lunch in order to have a fancy dinner, so the cost of the fancy dinner is the opportunity cost of not being able to have a lunch.

When Bob Has to Give Up Lunch in Order to Have