Which of the following is an example of opportunity cost?
A)renting an apartment near school
B)saving money instead of taking a vacation
C)setting aside money for paying income tax
D)purchasing automobile insurance
E)using a personal computer for financial planning

Question

Quizplus · Accepted Answer

Choosing to save money instead of taking a vacation incurs an opportunity cost because the money used for saving could have been used for other purposes such as investing, paying off debts or enjoying leisure activities.

Which of the Following Is an Example of Opportunity Cost