The opportunity cost of owning a car is
A)the price of the car.
B)filling the tank twice a week.
C)the cost of getting your car inspected once a year.
D)the vacation to Hawaii you had to give up in order to make your car payments.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that is given up in order to pursue a certain action or choice. In this case, owning a car has an opportunity cost of the vacation to Hawaii that was given up to make car payments. This is because the money used for car payments could have been used to pay for the vacation instead. Therefore, the answer is D.

The Opportunity Cost of Owning a Car Is