Which of the following is an example of opportunity cost?
A)The income that could have been earned by working full-time instead of going to college.
B)The decline in the grades of a student athlete that occurs because she decides to spend more time practicing sports than on her academic work.
C)The value of other things you could have done with the same time and money it cost you to go to the movies.
D)The value of the next-best bundle of goods and services that could have been produced instead of using those resources to put astronauts on the moon.
E)All of the choices are examples of opportunity cost.

Question

Quizplus · Accepted Answer

All of the choices listed are examples of opportunity cost. Opportunity cost is the value of the next-best alternative that must be given up or foregone in order to pursue a certain action or decision. In choice A, the opportunity cost of going to college is the income that could have been earned from working full-time. In choice B, the opportunity cost of spending more time practicing sports is a decline in academic performance. In choice C, the opportunity cost of going to the movies is the value of other things that could have been done with the same time and money. In choice D, the opportunity cost of putting astronauts on the moon is the next-best bundle of goods and services that could have been produced with those resources.

Which of the Following Is an Example of Opportunity Cost